UPDATE: Bank of America Downgrades QUALCOMM to Neutral, Reiterates $75 PT as Market Dynamics Bode Poorly for Growth

In a report published Monday, Bank of America analyst Tal Liani downgraded the rating on QUALCOMM QCOM from Buy to Neutral, but reiterated the $75.00 price target. In the report, Bank of America noted, “We are downgrading Qualcomm from a Buy to a Neutral, based on our expectations for a significant deceleration in revenue and earnings growth over the next two years. Our handset model, updated this morning, is pointing to a sharp deceleration in the Smartphone market value growth from 32% in 2013 to 10% in 2015, with a profound impact on royalty revenue growth and even a greater impact on EPS. Overall, we expect revenue growth to decelerate from 29% to 6% over the next two years, and EPS growth to decline from 22% to only 2%.” QUALCOMM closed on Friday at $68.02.