Wells Fargo analyst Gaby Mobley downgraded shares of Qualcomm Inc.
QCOM,
to underweight from equal weight Monday, writing that the reasoning behind the ratings change is consistent with his October downgrades of Qorvo Inc.
QRVO,
and Skyworks Solutions Inc.
SWKS,
“That is, once investor sentiment toward the chip sector turns more positive, or once investors are convinced we’ve reached a trough in the chip cycle, we believe shares of companies w/high smartphone exposure should underperform the broader chip sector,” Mobley wrote. He anticipates that Qualcomm’s stock could trade at a discount to peer names in part given expected negative investor attitudes toward the “no-growth mobile handset market.” He kept a $105 price target on shares of Qualcomm, which have dropped 35% over the past 12 months as the S&P 500
SPX,
has declined by about 17%.
Business
Qualcomm stock declines after Wells Fargo turns bearish
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