JP Morgan upgraded Qualcomm (QCOM) to overweight from underweight.
Analyst Ehud Gelblum says his upgrade is based on strong demand in the CDMA1x market; he says Qualcomm's chip share appears to have much stronger legs than he earlier anticipated. This means that there likely won't be any gap between CDMA1x and 3G product cycles over 2004.
Gelblum raised the 38 cents first-quarter fiscal 2004 earnings per share estimate to 48 cents, based on the company's positive preannouncements on Thursday, when it raised its earnings and revenue forecasts. Gelblum raised the $1.41 fiscal 2004 (Sep.) earnings per share estimate to $1.57, and upped the $4.15 fiscal 2005 estimate to $4.43.