QCOM

Qualcomm, Inc.

TMT


Presented:11/30/2022
Price:$126.49
Cap:$141.80B
Current Price:$174.09
Cap:$193.94B

Presented

Date11/30/2022
Price$126.49
Market Cap$141.80B
Ent Value$147.09B
P/E Ratio11.12x
Book Value$16.07
Div Yield2.85%
Shares O/S1,121.00M
Ave Daily Vol8,380,123
Short Int1.35%

Current

Price$174.09
Market Cap$193.94B
QUALCOMM, Inc. engages in the development, design, and provision of digital telecommunications products and services. It operates through the following segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on technologies for the use in voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses and provides rights to use portions of the firm's intellectual property portfolio. The QSI segment focuses on opening new or expanding opportunities for its technologies and supporting the design and introduction of new products and services for voice and data communications. The company was founded by Franklin P. Antonio, Adelia A. Coffman, Andrew Cohen, Klein Gilhousen, Irwin Mark Jacobs, Andrew J. Viterbi, and Harvey P. White in July 1985 and is headquartered in San Diego, CA.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Qualcomm Inc (QCOM), Texas Instruments Inc (TXN)

Highlights

The presenter is long shares of Qualcomm Inc (QCOM), believing there is upside to earnings and valuation. Investors disliked QCOM’s management team, but the presenter is more constructive on the new leadership. Additionally, bears think the company is too focused on smartphones and don’t seem to give the company credit for beating Apple’s patent challenges, increasing its share at Samsung, and winning its long-running standoff with EU antitrust regulators as well as the FTC. At $125 per share, the stock trades at 11x CY2023 EPS of ~$11. In contrast, he sees EPS upside to $13.20 and thinks the company deserves a mid-teen multiple. Underwriting a 15x valuation on his EPS figure yields a price target of $198 per share. 

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Idea Discussion

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