Analysts Bump Up Qualcomm Price Target Post Q4 Beat

Analysts bumped up their price targets on Qualcomm Inc QCOM following the Q4 beat and strong Q1 FY22 outlook.
Morgan Stanley analyst Joseph Moore raised the PT to $187 from $180, implying a 21% upside, and reiterated an Overweight.
While he had "high confidence" in Qualcomm numbers, Moore was "still surprised at the magnitude of upside," as the company beat his revenue and earnings estimates by 5% and 15% and guided to 20% earnings growth in FY22 that was about 15% higher than his estimate.
Wells Fargo analyst Gary Mobley raised the PT to $150 from $138, implying a 2% downside, and maintained an Equal Weight.
The analyst cites better-than-expected Q4 results and Q1 2022 guide.
While Qualcomm is executing well, much like any other semiconductor company in the current environment, and despite good execution concerning growing RFFE, IoT & automotive sales above market growth rates, Mobley is reluctant to chase the stock with a rating upgrade because Qualcomm may be seeing the most optimal of conditions.
KeyBanc analyst John Vinh raised the PT to $185 from $175, implying a 20% upside, and affirmed an Overweight.
Qualcomm's efforts to address supply constraints and diversify away from handsets are starting to pay dividends for the company as it is benefiting from share gains in mobile, driving beat-and-raise results, with Q2 also expected to be better than seasonal due to the ramp of new SnapDragon platforms and non-handset growth, the analyst contends.
As such, Qualcomm sees more significant than 20% EPS growth in the fiscal year 2022, Vinh adds.
Citi analyst Christopher Danely raised the PT to $165 from $158 and reiterated a Neutral.
However, the analyst still expects share loss and pressure on royalty rates as the 5G cycle matures further in 2022.
Goldman Sachs analyst Rod Hall upgraded to Buy from Neutral with a PT of $194, up from $162, implying a 26% upside.
The company last night reported a "strong beat and raise quarter" and indicated above 20% earnings growth in fiscal 2022.
The analyst says the earnings growth indication was double his 10% forecast as Qualcomm called out expected better high-end Android momentum and broader based positive expectations in other business lines.
He believes that a higher-end Android phone based on Snapdragon represents $60 of content plus royalties for Qualcomm versus just $30 for an iPhone.
Hall cites Android momentum for the upgrade of Qualcomm.
Piper Sandler analyst Harsh Kumar raised the PT to $190 from $175 and affirmed an Overweight.
The analyst is making Qualcomm his top large-cap pick due to its "exceptional positioning and strength in the Android market."
The company is "extremely well-positioned," both near and long term, and the Android handset strength will help offset any risk from Apple Inc AAPL moving away.
Price Action: QCOM shares traded higher by 11.9% at $154.92 on the last check Thursday.

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