The research analyst raised the rating on Texas Instruments (nyse: TXN - news - people ) to "strong buy" from "buy."
Credit Suisse First Boston reiterated an "outperform" rating and $30 target price on Texas Instruments (nyse: TXN - news - people ), saying the company "remains one of our top long-term ideas" given strong product cycles and high barriers to entry. With Texas Instruments reporting third-quarter earnings next week, CSFB said it expects analog to remain weak as the supply chain continues to adjust inventory levels. "However, improving business at Nokia (nyse: NOK - news - people ), a healthy market for high-end handsets, and strong DLP [digital light processing] sales should drive results in-line with our estimates of $3.16 billion and 28 cents [per share]," CSFB said. The research firm expects Texas Instruments to guide its fourth-quarter midpoint below seasonality and below CSFB's estimate of revenue of $3.18 billion and earnings of 25 cents per share. "Despite our negative 2% downturn forecast for 2005, we remain positive on Texas Instruments' long-term growth outlook," CSFB said. "The company's portfolio of counter-cyclical product cycles should continue to gain momentum in the marketplace and allow Texas Instruments to outgrow the industry in a low-beta cycle." CSFB said while the company's near-term outlook has slowed, it believes Street expectations around the stock have reset to lower levels. The research firm currently estimates 2004 and 2005 earnings per share of 99 cents and $1.10, respectively.
Updated Thursday, August 14, 2003 11:27:56 AM ET
NEW YORK, August 14 (New Ratings) � Analyst Srini Pajjuri of Merrill Lynch reinitiates coverage of Broadcom Corporation (BRCM) with a "sell" rating. The fair value is set to $14.
In a research note published this morning, the analyst mentions that Broadcom is well positioned to benefit from the emerging growth trends in the Ethernet and wireless LAN markets. The analyst anticipates significant market share loss, however, for the company in its core server chipsets business in the forthcoming quarters. In addition, Merrill Lynch expresses its concern regarding the intensified competition for Broadcom in the WLAN and cable business segments in the near term.
Qualcomm, Hitachi ties up on non-voice com.
NEW YORK, Jan 10 (Reuters) - U.S. telecom equipment
maker, Qualcomm Inc. (NasdaqNM:QCOM -
linked up with Japan's Hitachi Ltd. on commercialization
of a new two-way communication system
non-voice data to mobile terminals and also receives from
them, The Nihon Keizai Shimbun
Nikkei's Tuesday edition, citing no certain sources, said
Qualcom developed the system, and the Japanese
electronics maker will invest some 10
billion yen ($95
million) on setting up a domestic production line by
According to Nikkei monitored here on Monday, both
companies will conduct joint feasibility tests of a High
Data Rate (HDR) system this
UALCOMM CDMA Technologies Announces
Over-the-Air Phone Call Demonstration for Complete 3G
1x MC Solution
- MSM5000 and CSM5000 Chipsets
to Enable Manufacturers to Accelerate Deployment of
How would it stock price react with this
S&P raise Qualcomm Inc ratings
provided by Standard & Poor's)
NEW YORK, July 13 -
Standard & Poor's today placed its double-'B' corporate
credit rating, double-'B'
bank loan rating, and
single-'B' preferred stock rating for Qualcomm Inc. on
CreditWatch with positive
CreditWatch placement follows the company's filing of an
offering to sell 4 million shares of common stock. Based
on the recent stock
price, the offering could
generate over $550 million.
San Diego, Calif.-based
Qualcomm's liquidity of $200 million at March 31, 1999, had
been declining due to substantial increases in
capital and vendor financing activities.
sale could fund some of Qualcomm's potential $1
billion in finance commitments, its expanding working
capital needs, and provide
flexibility to support the company's evolving handset and
Financial flexibility is
enhanced by $600 million of revolving credit
In recent months, Qualcomm had favorably resolved a
dispute with AB LM Ericsson concerning patents for ``code
division multiple access''
(CDMA) wireless technology,
and sold its unprofitable base station manufacturing
operations to Ericsson.
Patent royalties are expected
from substantially all CDMA manufacturers and will
apply to equipment built for the next generation of the
system for mobile telecommunications'' (GSM) wireless
technology used throughout Europe and elsewhere, starting in
about three years.
Still, the company faces
increasing competition and declining prices for wireless
handsets, which represent nearly 50% of revenues, and
pressures on special-purpose chips which the company
supplies to most CDMA equipment
Furthermore, the company is obligated to offer a substantial
degree of financial support to several speculative-grade
Qualcomm generates good cash flows from its truck fleet
communications service, and provides services and equipment to
Assuming that the shares are sold at a price in the recent
range and upon successful completion, the corporate
credit and bank loan ratings
would be raised to
double-'B'-plus and the preferred stock rating to single-'B'-plus
and the outlook will be stable.