Benzinga | Nov 4, 2021 11:06AM EDT

Analysts Bump Up Qualcomm Price Target Post Q4 Beat

* Analysts bumped up their price targets on Qualcomm Inc (NASDAQ:QCOM) following the Q4 beat and strong Q1 FY22 outlook.

* Morgan Stanley analyst Joseph Moore raised the PT to $187 from $180, implying a 21% upside, and reiterated an Overweight.

* While he had "high confidence" in Qualcomm numbers, Moore was "still surprised at the magnitude of upside," as the company beat his revenue and earnings estimates by 5% and 15% and guided to 20% earnings growth in FY22 that was about 15% higher than his estimate.

* Wells Fargo analyst Gary Mobley raised the PT to $150 from $138, implying a 2% downside, and maintained an Equal Weight.

* The analyst cites better-than-expected Q4 results and Q1 2022 guide.

* While Qualcomm is executing well, much like any other semiconductor company in the current environment, and despite good execution concerning growing RFFE, IoT & automotive sales above market growth rates, Mobley is reluctant to chase the stock with a rating upgrade because Qualcomm may be seeing the most optimal of conditions.

* KeyBanc analyst John Vinh raised the PT to $185 from $175, implying a 20% upside, and affirmed an Overweight.

* Qualcomm's efforts to address supply constraints and diversify away from handsets are starting to pay dividends for the company as it is benefiting from share gains in mobile, driving beat-and-raise results, with Q2 also expected to be better than seasonal due to the ramp of new SnapDragon platforms and non-handset growth, the analyst contends.

* As such, Qualcomm sees more significant than 20% EPS growth in the fiscal year 2022, Vinh adds.

* Citi analyst Christopher Danely raised the PT to $165 from $158 and reiterated a Neutral.

* However, the analyst still expects share loss and pressure on royalty rates as the 5G cycle matures further in 2022.

* Goldman Sachs analyst Rod Hall upgraded to Buy from Neutral with a PT of $194, up from $162, implying a 26% upside.

* The company last night reported a "strong beat and raise quarter" and indicated above 20% earnings growth in fiscal 2022.

* The analyst says the earnings growth indication was double his 10% forecast as Qualcomm called out expected better high-end Android momentum and broader based positive expectations in other business lines.

* He believes that a higher-end Android phone based on Snapdragon represents $60 of content plus royalties for Qualcomm versus just $30 for an iPhone.

* Hall cites Android momentum for the upgrade of Qualcomm.

* Piper Sandler analyst Harsh Kumar raised the PT to $190 from $175 and affirmed an Overweight.

* The analyst is making Qualcomm his top large-cap pick due to its "exceptional positioning and strength in the Android market."

* The company is "extremely well-positioned," both near and long term, and the Android handset strength will help offset any risk from Apple Inc (NASDAQ:AAPL) moving away.

* Price Action: QCOM shares traded higher by 11.9% at $154.92 on the last check Thursday.