Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Qualcomm Inc (NASDAQ: QCOM) and Xilinx (NASDAQ: XLNX).
Qualcomm Inc (NASDAQ: QCOM)
Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on Qualcomm Inc (NASDAQ: QCOM) today and set a price target of $65. The company’s shares opened today at $56.49.
Rakesh observed:
“We got an opportunity to catch up with QCOM management. We believe while the Apple suppliers continue to not pay any IP royalty on the iPhone shipments, the revised QCOM guide should provide a base case for investors with upside from potential catch up payments and share gains versus Mediatek. A revised guide and a month later the first breach of contract complaint in U.S court. On April 18, QCOM revised its JunQ guide to exclude any Apple payments and should provide a base case scenario. On May 17, almost a month post the revised guide, QCOM announced it had filed a breach of contract complaint in the Southern District court of California against Honhai, Pegatron, Compal and Wistron among others for non-payment of royalties per agreements entered into from 2000-10. While there are no timelines to a selection of a judge, date of first trial and payments or injunctions, we believe it starts a process, which should culminate with catch-up payments of up to ~$500M/qtr starting from the MarQ, upside to current QCOM guidance. The lawsuit also claims that Apple has agreed to indemnify its suppliers for any damages and Apple is trying for a below market direct license. The lawsuit noted that on April 25 it received a letter from Apple that noted non-payment of royalty payments for the 1Q17(Mar) quarter until the litigation was resolved. Where is Samsung ? We believe QCOM signed a 15-year IP agreement with Samsung in 2009 which is expected to continue through 2024E.”
According to TipRanks.com, Rakesh is a top 100 analyst with an average return of 29.5% and a 74.0% success rate. Rakesh covers the Technology sector, focusing on stocks such as Advanced Micro Devices, NXP Semiconductors, and Skyworks Solutions.
Qualcomm Inc has an analyst consensus of Moderate Buy, with a price target consensus of $59.89.
Xilinx (NASDAQ: XLNX)
MKM Partners analyst Ruben Roy reiterated a Hold rating on Xilinx (NASDAQ: XLNX) today and set a price target of $63. The company’s shares opened today at $66.05, close to its 52-week high of $66.88.
Roy commented:
“We expect the message to remain on end-market diversification and emerging opportunities in growth areas such as data center/cloud computing, industrial IoT and longer-term prospects in 5G wireless infrastructure. XLNX is also likely to amplify its AI/Machine Learning message given increasing investments in these areas. From a model perspective, we expect XLNX to maintain a consistent top line growth target to FY 2017 of 4-8% and a longer-term operating margin target of 30%+.”
According to TipRanks.com, Roy is a 4-star analyst with an average return of 11.1% and a 65.2% success rate. Roy covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Silicon Laboratories, and Applied Materials.
Xilinx has an analyst consensus of Moderate Buy, with a price target consensus of $61.33.
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