The massive potential deal looms at what would be a tech-M&A record $103 billion. There has been some chatter that if Broadcom does not buy Qualcomm, it will go searching for others, one potentially being Skyworks Solutions (SWKS) - Get Report .
In any regard, Qualcomm has been an oft-talked about stock over the last few weeks -- even before Broadcom came knocking. There are concerns that Apple (AAPL) - Get Report could opt for Intel (INTC) - Get Report over Qualcomm in the future, but would a takeover by Broadcom -- an Apple supplier -- calm those concerns?
In any regard, Qualcomm stock has rocketed more than 19% over the past four trading sessions following rumblings of the deal. It's up another 2% on Wednesday after a few analysts jumped on board.
RBC Capital analyst Amit Daryanani upgraded Qualcomm to outperform and boosted his price target to $70. Previously, Daryanani maintained a sector perform rating and $55 price target. The valuation is attractive, even if Broadcom buys it. If it does buy Qualcomm, though, $70 per share is the unlikely buyout level, as it will likely move upward to the high-$70s or possibly even the low-$80s.
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Raymond James' Chris Caso also upgraded Qualcomm to outperform from market perform, assigning a $75 price target. Despite the multiple scenarios that exist with Qualcomm in the present, the stock has an attractive risk/reward set up. "Sizable accretion" from the Broadcom deal exists for all parties, he added.
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At the time of publication, Cramer's Action Alerts PLUS had no positions in AAPL, AVGO and NXPI.