Qualcomm's stock price jumped 3.61% to $89.15 a share after analyst Kevin Cassidy at Rosenblatt Securities initiated coverage of Qualcomm with a buy rating and a $105 price target.
That represents an over 17% premium over the San Diego-based chip maker's current trading price.
Qualcomm, which produces chips that connect mobile phones and other devices to wireless networks, will get a major boost from the ongoing shift to 5G, the Rosenblatt Securities analyst contends.
"Qualcomm will not only benefit from the 5G handset upgrade, but will lead the market in establishing 5G capabilities worldwide," Rosenblatt's Cassidy wrote, according to Bloomberg.
The chip maker is now "on the cusp of its next growth phase," the Rosenblatt analyst wrote, pointing to Qualcomm's push beyond handsets and its efforts to grow its patent licensing business.
Qualcomm beat analyst estimates on both earnings and revenue for its fiscal second quarter, which ended March 29 and covered the first three months of the year.
While net income declined 29% to $468 million due to the impact of the coronavirus, Qualcomm saw revenue rise 5% to $5.2 billion.
The chip maker's stock price has rebounded over the nearly past three months from a low of $60.91 a share on March 16, though it's not quite back to its 52-week high of $95.91 a share on Jan. 13.
The average analyst price target on Qualcomm is $90 a share, with 22 buy ratings, eight holds and four sells, according to Bloomberg.