Qualcomm price target cut to $60 from $68 at Evercore ISI
Evercore ISI analyst C.J. Muse cut his price target for Qualcomm (QCOM) to $60 from $68 and maintained an In Line rating, saying he expects to get clarity on the litigation with Apple (AAPL) early this year. Muse tells investors in a research note that a favorable outcome likely results in $5B in catch-up royalty payments, with $1.85B in Apple run-rate royalty payments, adding $1.30 to run-rate EPS, while an unfavorable outcome likely forces Qualcomm to license to other chipmakers and could lead to renegotiating license terms with major handset OEMs. Near-term, the analyst sees normal seasonality and weak smartphone markets pressuring units, and FX headwinds due to the strong dollar, which likely creates revenue headwinds into 1H.