NEW YORK (AP) -- A Citi Investment Research analyst took a less optimistic view on shares of chipmaker Qualcomm Inc. on Monday, saying smartphone sales have been weak because the market is becoming saturated.
THE OPINION: Analyst Glen Yeung took Qualcomm shares off a list of recommended stocks, although he maintained a "Buy" rating and a price target of $81 per share.
Yeung said sales of Apple Inc.'s iPhone 5 have been disappointing and production of Samsung Electronics Co.'s Galaxy S4 is set to decline sharply in the second quarter after its launch. He said the HTC One phone appears to be following a similar pattern.
"We attribute the lackluster sales of high-end smartphones primarily to market saturation," Yeung said, adding that innovation is also decreasing and sales growth may slow significantly.
THE STOCK: Shares of Qualcomm declined $1.04 to $59.91 in afternoon trading. The stock has traded between $59.46 and $68.50 in 2013.