Bernstein Lowers Qualcomm (QCOM) PT, Says Expectations “Now Appear Much Too High”

QUALCOMM Incorporated (NASDAQ:QCOM) is included among the Dividend Stock Portfolio for Income: 15 Stocks to Invest In.

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On March 26, Bernstein Research downgraded QUALCOMM Incorporated (NASDAQ:QCOM) to Market Perform from Outperform. It cut its price target to $140 from $175. The firm pointed to memory-related headwinds, noting that higher prices are having a “deleterious effect” on overall smartphone shipments. The analyst told investors that consensus estimates for Qualcomm “now appear much too high.” Bernstein also said the company’s “potential narrative tailwinds” from its buyback program and upcoming data center event are unlikely to offset weaker smartphone demand. It also flagged risk tied to the expiration of the Apple license agreement in about a year.

On March 17, Qualcomm announced a $20 billion stock buyback program, aiming to take advantage of a sharp decline in its share price. The drop has been linked to a global memory supply crunch, which is expected to slow handset production. The new authorization comes on top of the company’s existing $2.1 billion buyback plan. Qualcomm also said it is raising its quarterly cash dividend by more than 3% to $0.92 per share from $0.89.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes core technologies for the wireless industry. Its work spans 3G, 4G, and 5G connectivity, along with high-performance, low-power computing, including on-device artificial intelligence.

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