Apple’s New iPhone Launch Bodes Well for Qualcomm; Top Analyst Says ‘Buy’, , on October 17, 2020 at 12:53 am

By
On October 17, 2020
Tags:

Apple’s hotly anticipated iPhone 12 launch hogged Tuesday’s technology headlines, but for Canaccord analyst Michael Walkley, the launch acts as confirmation of the bull thesis for chipmaker Qualcomm (QCOM).With all four new models boasting 5G capabilities, it is Qualcomm, Walkley says, that stands to benefit from the new “long-term 5G investment cycle.”“We anticipate strong earnings in F2021 and beyond as 5G smartphones ramp, the mix of 5G growth benefitting Qualcomm with 50% greater content than a 4G smartphone, Apple re-enters the model for QCT shipments, and Huawei returns to the model for licensing payments,” the 5-star analyst said.Qualcomm has already signed off on long-term deals with all leading OEMs and its QTL (Qualcomm Technology Licensing) segment now boasts over 100 5G licenses.Walkley believes the mix of steadily improving smartphone sales and the 5G opportunity should “lead to sustained growth through F2022.” The analyst estimates “the mix of 5G smartphones will grow from roughly 200M units in C2020 to 450M-500M units in C2021 to roughly 1B units in C2022.”In fact, together with strong growth opportunities in markets such as IoT and automotive, Walkley anticipates QCT (Qualcomm CDMA Technologies) will grow its revenue from $16.10 billion in F2020 to $24.2 billion in F2022.Moreover, at Apple’s launch event, Verizon’s CEO joined the presentation to announce its goal of bringing 5G Ultra-Wideband services to 60 cities this year. For Walkley, Verizon’s ambition further adds to the Qualcomm bull case.“We view the concurrent iPhone launch and Verizon announcement as a strong positive for 5G customer adoption as 5G service expands across the globe at a greater scale. With 5G sales ramping and Qualcomm’s leadership position, we believe this should drive strong earnings growth,” Walkley summed up.All in all, Walkley reiterated a Buy on QCOM shares, alongside a $150 price target. What’s in it for investors? Upside of 16% from current levels. (To watch Walkley’s track record, click here)The Street currently has a cautiously optimistic outlook for the chip giant. The analyst consensus rates Qualcomm a Moderate Buy based on 15 Buys vs. 8 Holds. However, shares have had a bountiful 2020 and are up by 44% year-to-date, and as such, the $128.33 average price target suggests they will stay range bound for the foreseeable future. (See QCOM stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

Apple’s New iPhone Launch Bodes Well for Qualcomm; Top Analyst Says ‘Buy’Apple’s hotly anticipated iPhone 12 launch hogged Tuesday’s technology headlines, but for Canaccord analyst Michael Walkley, the launch acts as confirmation of the bull thesis for chipmaker Qualcomm (QCOM).With all four new models boasting 5G capabilities, it is Qualcomm, Walkley says, that stands to benefit from the new “long-term 5G investment cycle.”“We anticipate strong earnings in F2021 and beyond as 5G smartphones ramp, the mix of 5G growth benefitting Qualcomm with 50% greater content than a 4G smartphone, Apple re-enters the model for QCT shipments, and Huawei returns to the model for licensing payments,” the 5-star analyst said.Qualcomm has already signed off on long-term deals with all leading OEMs and its QTL (Qualcomm Technology Licensing) segment now boasts over 100 5G licenses.Walkley believes the mix of steadily improving smartphone sales and the 5G opportunity should “lead to sustained growth through F2022.” The analyst estimates “the mix of 5G smartphones will grow from roughly 200M units in C2020 to 450M-500M units in C2021 to roughly 1B units in C2022.”In fact, together with strong growth opportunities in markets such as IoT and automotive, Walkley anticipates QCT (Qualcomm CDMA Technologies) will grow its revenue from $16.10 billion in F2020 to $24.2 billion in F2022.Moreover, at Apple’s launch event, Verizon’s CEO joined the presentation to announce its goal of bringing 5G Ultra-Wideband services to 60 cities this year. For Walkley, Verizon’s ambition further adds to the Qualcomm bull case.“We view the concurrent iPhone launch and Verizon announcement as a strong positive for 5G customer adoption as 5G service expands across the globe at a greater scale. With 5G sales ramping and Qualcomm’s leadership position, we believe this should drive strong earnings growth,” Walkley summed up.All in all, Walkley reiterated a Buy on QCOM shares, alongside a $150 price target. What’s in it for investors? Upside of 16% from current levels. (To watch Walkley’s track record, click here)The Street currently has a cautiously optimistic outlook for the chip giant. The analyst consensus rates Qualcomm a Moderate Buy based on 15 Buys vs. 8 Holds. However, shares have had a bountiful 2020 and are up by 44% year-to-date, and as such, the $128.33 average price target suggests they will stay range bound for the foreseeable future. (See QCOM stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage