Qualcomm: A Cheaper Way to Play Apple
NEW YORK (TheStreet) - If you're looking for a way to play Apple
With its chips in Apple and Samsung products, as well as a host of others, Qualcomm is well positioned for the smartphone boom. Demand for all things Apple, in particular, is strong, and, as a key iPhone and iPad partner, Qualcomm stands to benefit.
The 8960 refers to Qualcomm's new dual-core Snapdragon chipset. Kvaal rates Qualcomm shares "overweight" with a $75 price target.
Shares of Qualcomm have been able to ride the coat-tails of smartphone and tablet growth this year, gaining 22.5% year-to-date.
TheStreet has already referred to Qualcomm as "the king of 4G".
As the trend towards mobility continues to grow, thanks to smartphones and tablets, Qualcomm should continue to reap the rewards, but Credit Suisse analyst Kulbinder Garcha notes Qualcomm is more leveraged to smartphone growth at this point. "Within the telecom equipment sector, we believe Qualcomm remains the highest quality business model with the best visibility," he wrote, in a note. He reiterated his "outperform" rating and $80 price target.
Qualcomm's business is so strong the company recently raised its dividend. Effective June 20, it will pay a quarterly dividend of 25 cents a share, up from 21.5 cents a share.
Investors will also be keen to hear Qualcomm's plans to tap the PC business. When Microsoft
Analysts polled by Thomson Reuters expect the San Diego-based chipmaker to report earnings of 96 cents per share on $4.84 billion in revenue. That's slightly higher than the first-quarter, when Qualcomm earned 97 cents per share on $4.68 billion in revenue.
Qualcomm shares are trading lower in early Wednesday trading, down 0.39% to $66.97.
Interested in more on Qualcomm? See TheStreet Ratings' report card for this stock.
--Written by Chris Ciaccia in New York
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