NEW YORK (TheStreet) --Shares of Qualcomm (QCOM) - Get Report were higher in early afternoon trading on Monday, as Nomura upgraded the stock to "buy" from "neutral." The firm also increased its price target on the stock to $80 from $55.
On reason for the upgrade was the purchase of NXP Semiconductors (NXPI), which Qualcomm announced last week, for $110 per 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.
Lebenthal Asset Management CEO Jim Lebenthal weighed in on Qualcomm stock in response to the upgrade during Monday afternoon's "Fast Money Halftime Report" on CNBC.
"Look I think this is a great long-term hold but, the truth here is it's up 60% in less than a year. The good news from the NXP acquisition is in it. I think if you're a trader you can take some gains here," Lebenthal explained.
However, from a long-term perspective investors will want to wait and see if the China royalties "are going to come through," he added. "That has to be proven in earnings which are coming up this week."
(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.