Qualcomm (QCOM) Stock Falls on BMO Rating Downgrade
NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report are falling 0.93% to $54.37 this morning after analysts at BMO Capital Markets downgraded the stock to an "underperform" rating from "market perform."
The firm has a $50 price target on the stock.
BMO said it sees three negative catalysts coming for the San Diego-based communication technology company.
The firm said that Qualcomm's guidance for unit growth in the third and fourth quarter is too "aggressive" at 5%-11%, and that the company will be forced to lower numbers.
BMO also expects the chip market share to continue to fall in fiscal year 2017, following two consecutive years of losses. Competitors' successes - like Intel's (INTC) win with Apple (AAPL) - could further pressure the stock.
(Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
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 and reasonable valuation levels. However, as a counter to these strengths, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: QCOM
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.