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BofA: Qualcomm Downgraded Ahead of Earnings

Shoshanna Delventhal

Bears at Bank of America Merrill Lynch were out with a note on Wednesday in which they downgraded shares of San Diego, Calif.-based semiconductor manufacturer Qualcomm from "buy" to "neutral." According to Bank of America's Tal Liani, even strong earnings will not be enough to offset softer smartphone demand and ongoing licensing disputes with global smartphone giants Apple Inc. ( AAPL) and Huawei Technologies Inc. “Our model suggests that management has exhausted most opportunities for P&L restructuring, yet earnings upside is not likely to be sufficient to increase the share price,” Liani wrote.