Qualcomm Inc (QCOM)

[khemara_qc]

Qualcomm's Outlook Boosted By 3G Adoption
David Ng, 09.08.05, 5:23 PM ET

http://www.forbes.com/markets/2005/09/08/qualcomm-wireless-earnings-0908markets16.html?partner=yahoo....

Credit Suisse First Boston reiterated an "outperform" rating on Qualcomm (nasdaq: QCOM - news - people ) and raised the target price to $50 from $45.

The research firm said Qualcomm's current valuation is "compelling," particularly relative to the stock's historical trading range.

"We therefore view this as an attractive entry point and would expect to see more evidence of a late 2005 3G ramp in Europe over the next few months," the research firm said.

CSFB raised the fiscal 2006 and 2007 earnings-per-share estimates on Qualcomm to $1.45 and $1.68, respectively, from $1.43 and $1.65. The research firm cited improving confidence in accelerating 3G adoption by 2006.

Qualcomm should receive comparable WCDMA royalty rates versus CDMA2000 royalty rates, according to CSFB. However, the research firm said there is some uncertainty around this related to the renegotiation of Qualcomm's licensing agreement with Nokia (nyse: NOK - news - people ).