NEW YORK (TheStreet) -- Shares of Qualcomm Inc (QCOM) were stalling, lower by 1.22% to $63.88 in early market trading Monday, after the company was downgraded to "sell" from "hold" by analysts at Drexel Hamilton this morning.
The mobile chipmaker also had its price target cut to $60 from $55.
Drexel Hamilton analysts said the company is facing increased price competition.
The firm also reduced its 2016 earnings estimates as "intensified chipset competition sets the stage for royalty give-backs to hold share."
Analysts added that it sees risks including "a variety of cyclical economic factors upon which final demand for mobile handsets, tablets and computers are based, as well as several
competitive issues that look to carry weightier import in upcoming quarters."
San Diego, Calif.-based Qualcomm designs, manufactures and market digital communications products and services based on code division multiple access, orthogonal frequency division Multiple Access and other technologies.
Separately, TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."