Qualcomm Stock Can Go Higher: RBC Analyst
RBC Capital Markets analyst Mark Sue told CNBC Qualcomm shares can go higher as it takes advantage of having its chips in products using Apple’s or Google’s operating systems.
“We think Qualcomm is in a good position right now,” he told CNBC’s “Power Lunch,” a day before the company reports earnings. “The smartphone growth is very healthy for the overall market.”
Sue said Qualcomm “is seeing a lot of growth in the wireless space. This year it’s all about 4G LTE,” or fourth-generation wireless mobile broadband technology, “and chips are being designed into popular devices from Apple, Samsung, and others.”
With a $75 price target and an “outperform” rating on Qualcomm stock, Sue said he expects continued growth in the smartphone market, and wants to see Qualcomm move beyond Android-powered or Apple-powered phones into those using Microsoft’s Windows 8.
He also said Qualcomm has a chip, called 8960, that has become very popular and is going into a lot of devices.
“Chips are getting faster. Devices are getting faster,” Sue said. “If you don’t have an LTE phone, you’re going to be handicapped.”
That means continued growth for Qualcomm, he said.
“We’ve been a little conservative [in earnings expectations] relative to the seasonatility of the smartphone business and we haven’t really factored in the growth from later this year, when we should see Windows 8 ramp,” Sue added.
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Sue does not own shares of Qualcomm, but RBC Capital Markets makes a market in the stock.