Wells Fargo analyst Gaby Mobley downgraded shares of Qualcomm Inc.
to underweight from equal weight Monday, writing that the reasoning behind the scores change is constant together with his October downgrades of Qorvo Inc.
and Skyworks Options Inc.
“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
has declined by about 17%.