RBC has revised down its 12-month price target on Qualcomm Incorporated (QCOM) to $81 from $92, as the firm highlighted disruptions to supply chain due to the coronavirus outbreak.
At the same time, RBC maintained its “Sector Perform” rating on the stock.
The shares of Qualcomm Incorporated closed higher for the fourth time in the past ten trading sessions on NASDAQ on Tuesday. It has also been the sharpest single-session gain since April 17th 2019. The stock went up 8.62% ($6.26) to $78.90, after touching an intraday high at $78.93, or a price level not seen since March 5th ($81.37).
Shares of Qualcomm Incorporated have retreated 10.57% so far in 2020 compared with a 10.79% loss for the benchmark index, S&P 500 (SPX).
In 2019, Qualcomm’s stock went up 55.03%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.
RBC analyst Mitch Steves pointed out that Qualcomm’s second-quarter results might be reported near the low end of the guidance as a result of the coronavirus-related disruption to the company’s smartphone supply chain.
According to Steves, the disruptions “are likely impacting both the March quarter and the upcoming guidance as well,” regardless of that checks are indicating Qualcomm’s supply chain is “picking up at this point in time.”
Analyst stock price forecast and recommendation
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Qualcomm Incorporated’s stock price, have a median target of $100.00, with a high estimate of $135.00 and a low estimate of $80.00. The median estimate represents a 26.74% upside compared to the closing price of $78.90 on March 10th.
The same media also reported that at least 17 out of 29 surveyed investment analysts had rated Qualcomm Incorporated’s stock as “Buy”, while 12 – as “Hold”.