JP Morgan Ups Qualcomm to Buy
JP Morgan analyst Ed Snyder raised the firm's rating on Qualcomm (QCOM ) to buy from long term buy following Motorola's (MOT ) confirmation that China is taking IS95 (CDMA equipment) which will result in equipment royalties now and handset royalties in 2002.
In addition, 1XRTT (data product for CDMA phones) is doing well in Korea and will accelerate when Sprint Corp. (FON ) starts to deploy in US in the first half of 2002. While downward revisions to company guidance for 2001 CDMA handsets and ASIC sales are required, Snyder believes these events are already priced into stock. Snyder has a $65 price target.