JP Morgan reported on Tuesday that they have downgraded wireless products/services company, QUALCOMM, Inc.(QCOM) to “Neutral.”
The firm has lowered their rating on QCOM from an “Overweight” to “Neutral,” and has reaffirmed a $70 price target on the company. This price target suggests a 5% increase from the stock’s current price of $66.19.
An analyst from the firm commented, “we are downgrading our rating on Qualcomm from Overweight to Neutral as every day in 2013 brings us closer to rapidly slowing smartphone adoption that we expect in 2014. As the windfall from high 28nm chip demand recedes into the rearview mirror we believe this eventual market deceleration is likely to become more of a focus for Qualcomm investors. Our proprietary models also suggest that 3G ASPs are likely to finally begin declining this year as cheaper tablets and smartphones weigh into the mix. We are keeping our $70 price target to indicate that we continue to see limited upside to current earnings estimates and the stock price.”
QUALCOMM shares were down 94 cents, or -1.40% during premarket trading Tuesday. The stock has increase 7% in the past year.
The Bottom Line
Shares of QUALCOMM, Inc.(QCOM) have a 1.49% yield, based on Monday’s closing price of $67.18.
QUALCOMM, Inc.(QCOM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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