Bernstein SocGen Group reaffirms Qualcomm stock rating with $185 target

On Tuesday, Bernstein SocGen Group analysts reaffirmed their Outperform rating for Qualcomm stock (NASDAQ: NASDAQ:QCOM) and maintained a price target of $185. The decision follows the firm’s participation in a Best Ideas panel at Bernstein’s 41st annual Strategic Decisions Conference last week. With a current P/E ratio of 14.91 and strong revenue growth of 16.15%, InvestingPro analysis suggests the stock is currently undervalued.

During the panel, Qualcomm was highlighted as one of the firm’s more intriguing and unconventional investment ideas. Analysts noted that while Qualcomm may not be their top pick, it remains a compelling choice due to its unique market position. The company’s financial strength is evident in its 22-year track record of dividend increases, currently offering a 2.43% yield, and maintaining healthy profit margins above 55%.

Investors have shown mixed reactions towards Qualcomm, influenced by concerns over its association with smartphone markets, potential impacts from Apple (NASDAQ:AAPL), ongoing competition and pricing challenges, and regulatory issues experienced in the past. For deeper insights into Qualcomm’s market position and growth potential, InvestingPro subscribers can access exclusive analysis and 10 additional ProTips.

Despite these challenges, Bernstein SocGen Group analysts suggest that Qualcomm is a stock worth considering. They reiterated their belief in the company’s potential, emphasizing their Outperform rating and $185 price target.

The analysts’ presentation and discussion on Qualcomm were part of a broader conversation at the conference aimed at identifying innovative and promising investment opportunities.

In other recent news, Qualcomm reported its second-quarter fiscal 2025 results, outperforming analyst expectations with earnings per share (EPS) of $2.85, compared to the forecast of $2.80. The company also reported revenues of $10.84 billion, exceeding the anticipated $10.55 billion. Despite these positive earnings, Qualcomm’s stock experienced a decline in after-hours trading. In merger news, Qualcomm’s deadline to make a potential takeover offer for Alphawave IP Group has been extended for the fourth time, with no guarantee that a firm offer will be made. On the analyst front, Loop Capital maintained a Hold rating on Qualcomm, with a price target of $155, citing potential revenue growth from its chipset business if Apple’s self-developed modem underperforms. Meanwhile, Seaport Global Securities initiated coverage on Qualcomm with a Neutral rating, noting challenges due to the maturation of the smartphone market and increased competition. Qualcomm is making strides in diversifying its business, with significant revenue growth in its automotive and Internet of Things (IoT) sectors. These developments highlight Qualcomm’s ongoing efforts to expand beyond its traditional mobile handset market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.