The firm raised its price target to $80 from $55 on shares of the San Diego-based semiconductor company.
Last week, Qualcomm said it has agreed to purchase NXP Semiconductors (NXPI) for $110 a share. The deal should add "a ton of scale," expand the total addressable market and open new channels for Qualcomm's Snapdragon processors, Nomura claimed.
Additionally, the acquisition should bolster full-year earnings, inclusive of stock compensation expenses, by 30% to $6 per share in 2018, the firm noted.
"We believe this accretion will prove too substantial for investors to ignore," Nomura said.
(Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with afree trial.)
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Qualcomm's strengths such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: QCOM
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 article's author.