The San Diego-based provider of wireless technologies faces a threat from Intel (INTC), which could take some of its business with Apple (AAPL), Barclays said.
Barclays was expecting Qualcomm to make a larger effort to monetize its model business, the firm said.
The firm "stayed with the overweight on Qualcomm too long," Barclays added.
"We recognize Qualcomm believes it can innovate its way out of this and has made strides to win back business with its 820 IC, but with Intel now likely shipping at Apple we see a harder road ahead," the firm added. "If Qualcomm's modem is truly a franchise then we will be wrong and Intel will only be marginally successful, but we still have issues with Qualcomm's ability to drive the right level of profitability from the business it retains."
Qualcomm stock is down by 1.1% to $50.30 in pre-market trading on Monday.
Separately, 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.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: QCOM