Citi has adjusted its price target for Qualcomm (QCOM, Financial), reducing it from $185 to $145, while maintaining a Neutral stance on the stock. This decision comes in light of the anticipated recession and the persistence of certain tariffs, particularly those impacting China, which are expected to remain in place for an extended period.
In its analysis of previous economic downturns, Citi observed that valuations of U.S. semiconductor stocks, including Qualcomm, now lie approximately in the middle of their historic averages. As a result, the firm has decreased its earnings estimates for this sector by an average of 20%.
The firm also identified Analog Devices (ADI) and Texas Instruments (TXN) as historically strong performers during downturns and anticipates these companies to show resilience again under similar economic conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Qualcomm Inc (QCOM, Financial) is $197.74 with a high estimate of $270.00 and a low estimate of $145.00. The average target implies an upside of 47.13% from the current price of $134.40. More detailed estimate data can be found on the Qualcomm Inc (QCOM) Forecast page.
Based on the consensus recommendation from 40 brokerage firms, Qualcomm Inc's (QCOM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Qualcomm Inc (QCOM, Financial) in one year is $167.74, suggesting a upside of 24.81% from the current price of $134.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Qualcomm Inc (QCOM) Summary page.
