Qualcomm inventory declines after Wells Fargo turns bearish

Wells Fargo analyst Gaby Mobley downgraded shares of Qualcomm Inc.
QCOM,
-1.09%
to underweight from equal weight Monday, writing that the reasoning behind the scores change is constant together with his October downgrades of Qorvo Inc.
QRVO,
-0.30%
and Skyworks Options Inc.
SWKS,
-0.65%.
“That’s, as soon as investor sentiment towards the chip sector turns extra optimistic, or as soon as buyers are satisfied we have reached a trough within the chip cycle, we consider shares of corporations w/excessive smartphone publicity ought to underperform the broader chip sector,” Mobley wrote. He anticipates that Qualcomm’s inventory may commerce at a reduction to look names partly given anticipated detrimental investor attitudes towards the “no-growth cellular handset market.” He saved a $105 worth goal on shares of Qualcomm, which have dropped 35% over the previous 12 months because the S&P 500
SPX,
+0.11%
has declined by about 17%.