"We increase our 12-month target price by $1 to $85, based on P/E peer analysis" - S&P REITERATES STRONG BUY OPINION
S&P REITERATES STRONG BUY OPINION ON SHARES OF QUALCOMM
(S&P Capital IQ)
We increase our 12-month target price by $1 to $85, based on P/E peer analysis. We are increasing our FY 13 (Sep) GAAP EPS estimate $0.01 to $3.92, reducing FY 14's by $0.12 to $4.31, and introducing FY 15's of $4.68. QCOM reports Mar-Q GAAP EPS of $1.06, vs. $0.84, $0.01 better than our estimate. Revenues were 1.5% below our estimate, but interest income was higher than expected. The gross margin was lower than expected, but that was due to a strong performance in the lower-margin chipset business, a trend we expect to continue in FY 13.