CS First Boston Ups Qualcomm to 'Neutral'
CS First Boston upgraded Qualcomm (QCOM ) to neutral from underweight.
Analyst Tim Long says his upgrade is based on his view that near-term fundamentals are intact, and the stock is approaching fair value. He says Qualcomm's geographic exposure should help the company have a solid March quarter.
Long thinks China will continue to subsidize CDMA handsets. He also thinks India will launch commercially, and that Japan will push CDMA 1x for its fiscal yearnd. He also says Korea will be stable. Long says the U.S. and Latin America should be the only weak markets. He notes his inventories at Qualcomm's major customers are O.K.
Long is keeping his $1.20 fiscal 2003 (Sept.) earnings per share estimate; he believes the next earnings per share revision will be up rather than down. He is also maintaining his $36 target.
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