Nomura's Instinet lowered its rating on Qualcomm to neutral from buy, citing increased regulatory scrutiny of its NXP Semiconductors deal due to concerns over its patent licensing practices.
"Investigations into Qualcomm's licensing practices in the U.S., Europe, and Asia were known risks at the time of the NXPI acquisition announcement. ... However, recent rulings and lawsuits are stronger and broader than anticipated," analyst Romit Shah wrote in a note to clients Monday. "Considering recent developments with QTL [Qualcomm Technology Licensing], we believe it is logical to assume that the regulatory agencies in the U.S., Europe, and Asia might take longer to approve the NXPI deal."