NEW YORK (TheStreet) -- Qualcomm (QCOM) shares are up 1.7% to $74.57 on Wednesday following a Cowen note suggesting that the results from a Chinese regulatory investigation of the company could come to an end soon, citing Chinese media outlets. Chinese anti-monopoly officials announced in February that the company was under investigation for overcharging and abusing it's market position.
The firm believes that any potential punishment the company may incur as a result of the investigation will be minimal and that the wireless telecommunications product manufacturer may be in an even better position to collect licensing fees.
"Ultimately, we believe resolution of the NDRC investigation will enhance the company's long-term ability to collect royalties on substantially all LTE devices sold in China (including 3-mode), and open the door to resolution of one or more of the four major China-related QTL headwinds that weighed on initial F2015 guidance,"Cowen analysts said.
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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, notable return on equity, expanding profit margins, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."