Qualcomm Inc Gets Downgraded By UBS Analysts

The wireless giant is now being expected to have a price target of $64 from analysts at UBS

Qualcomm Inc has recently received a cut on the target share price by the analysts at UBS, who ran overresearch on the financials of the company in a note which was released in the market on Tuesday, October 20. The previous price that was expected by the company to reach was noted down at $71 whereas the new target has come around at $64. This cutting down of the target has come to the attention ofindustry analysts as it has been carried out right before the telecom company announces its earnings for the third quarter of the year.

Analyst Stephen Chin, who is the one at UBS covering the Qualcomm stock, has observed a ‘neutral’ rating for the wireless business. This particular rating which has been suggested by him is due to the a number of issues which the chip making company seems to be facing in the present times. According to the note, a decision is yet to be made by the firm which is related to some important strategic alignment which is to be carried out by the giant before the current year ends. Since the decision has not yet been made, it has erupted the feeling of uncertainty among not only the analysts but also in the investors which are not ready to suggest a bullish rating on the giant till it clears out its issue with its strategies. Apart from that issue, the company is also waiting to resolve the issue of proper and correct collection of the total sales it carried out in China when it sold out QTL and QCT in the Asian region, both which are sectors related to technology.

As per the rating given by Mr. Chin to the Qualcomm chip making company, the ratings are seen to be on the low specifically due to the increasing uncertainty and lower than expected figures coming from the OCT collection of sales that are still estimated to be on the lower side due to the amounting pressure on it. On the other hand, the analyst also discussed how the giant firm could be thinking about making a huge split between its two important subsidiaries, namely QCT and QTL, which can bring about a big change in the business it will carry out in the future. However, when the company was questioned about such changes being made, the rumor was dismissed right away by the management as this idea was indeed being considered in the past but it not being thought about anymore.