Here’s Why Qualcomm (QCOM) Stock is Down Today
NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report are slipping 1.7% to $52.10 late Tuesday afternoon as Pacific Crest reduced its price target on the stock to $59 from $61.
The firm has an "overweight" rating on shares of the San Diego-based semiconductor company and smartphone supplier.
Pacific Crest cited a "much more disappointing" ramp for Apple's (AAPL) iPhone 7 in the second half of the year than previously projected.
"Feedback from Asia indicates units are expected to be down 15% to 20% as compared to the iPhone 6s, as Apple appears to be taking a much more cautious view of the ramp," the firm wrote in an analyst note earlier today.
In addition to a weaker smartphone demand outlook, Pacific Crest cited slow progress signing outstanding licenses in China.
"Consistent feedback regarding weaker smartphone demand forecasts (Apple (AAPL), Huawei, Samsung (SSNLF), China smartphones ex-Oppo) for 2H16, coupled with slow company progress signing outstanding China licensees (most importantly Oppo and BBK), prompts lower estimates on QCOM," the firm noted.
(Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: QCOM