Beginning May 31, 2014, all 4G phones sold on the network will have to support TD-LTE, FDD-LTE, TD-SDCMA, WCDMA, and GSM.
The news caused Goldman Sachs (GS) to set a price target for Qualcomm to $90while reiterating its "buy" rating for the chipmaker. Analyst Simona Jankowski said in a note to investors that Qualcomm could have an easier time collecting royalties on LTE devices sold in China thanks to the inclusion of WCDMA and FDD-LTE.
"Qualcomm has the most mature and broad portfolio of five-mode SOCs," Jankowski wrote. "Competitively, this is an advantage relative to the SOC portfolios of Marvell, Mediatek, and Spreadtrum, and could help Qualcomm's market share as China Mobile targets about 100mn LTE devices in 2014."
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TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."