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Home / Business / Between antitrust issues, the LG Deal and the trade war, is a purchase of Qualcomm (QCOM)?

Between antitrust issues, the LG Deal and the trade war, is a purchase of Qualcomm (QCOM)?



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Qualcomm ( QCOM [19659003] ) recently signed an agreement with LG Electronics to license 5G technology to the phone manufacturer, although the deal did not send shares skyrocketing, however, it reinforced the idea that Qualcomm is the leader in 5G, which is expected to become mainstream in the next few years. As a reminder, the company recently reached out to Apple once competing to develop 5G technology on the iPhone. "data-reactid =" 1
1 "> Qualcomm ( QCOM ) recently agreed with LG Electronics on to license 5G technology to the phone manufacturer. Although the deal did not send shares skyrocketing, it reinforced the idea that Qualcomm is the leader in 5G, which is expected to go mainstream over the next few years. In addition, as a reminder, the company recently reached out to Apple, which was once competing to develop 5G technology on the iPhone.

However, the main theme for many investors is the recent antitrust judgment against Qualcomm. Judge Lucy Koh said the company's "licensing practices have stifled competition …" and have created rivals and consumers. She stated that the company must change business practices, including renegotiation of license agreements.

<p class = "canvas atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While many investors stay away from Qualcomm for At the moment, Morgan Stanley's James Faucette is diving. = "13"> While many investors are staying away from Qualcomm at the moment, Morgan Stanley's James Faucette dives in. The 5-star analyst maintained an overweight on the QCOM stock, with $ 89 price target, indicating over 20% upside from today's levels.

The analyst states that "most existing agreements, including the new one with LG, are largely consistent with that ruling," and that the LG agreement shows that the ruling is "largely irrelevant to Qualcomm's ability to claim royalties and for the underlying economy By business.

Still, Faucette does not see the LG deal as a big win, he thinks it is "encouraging" and sees it as "further validation … that the FTC case should not weigh investor sentiment," but does not adjust the estimates or increase its price target.

For Faucette, the main headwind is the US-China trade war. important for the company, especially as Huawei continues to increase its market share in China.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = " text "content =" In total, Wall is Street is not yet convinced of this chip giant, but cautious optimism is circling, as TipRank's analytics demonstrate QCOM as a moderate purchase. Based on 15 analysts polled over the last three months, 5 rank Qualcomm makes a purchase, 9 maintain a hold, while only 1 recommends Sell. The 12 month average price target is $ 78.36, marking ~ 7% up from where the stock is currently trading. ( See QCOM price target and analyst ratings on & nbsp; TipRank's ) "data-reactid =" 25 "> Overall, Wall Street is not yet convinced of this chip giant, but cautious optimism is circling as TipRank's analytics demonstrates QCOM as a moderate buy Based on 15 analysts polled over the past 3 months, Qualcomm holds 5 shares in a Buy, 9 holds a hold, while only 1 recommends Sell. The 12 month average price target is $ 78 , 36, and marks ~ 7% upside from where the stock is currently trading. (See QCOM price target and analyst ratings on TipRanks)


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