On January 6th, Canaccord Genuity reiterated its Buy rating on Qualcomm, with a target price of $80. According to the report's authors, "[w]e remain impressed with Qualcomm's planned investments and broad technology leadership positions in key technologies such as mobile ARM CPU design, including power and performance leadership, mobile GPUs, and its significant lead in integrated multi-mode LTE baseband chipsets." Further, the authors note, "we believe new markets such as small cells, wireless charging, and M2M could add incremental longer-term growth opportunities for both QCT and QTL."
The report further notes that "Qualcomm provided an updated five year growth forecast for double-digit annual sales and pro forma EPS growth. The authors attribute this growth to a combination of factors including "an improving global smartphone mix; ramping 3G penetration in emerging markets; LTE sales driving higher priced global devices and chipsets; increasing opportunities in tablets, Win8 PCs, small cells and M2M; and the longer-term target to expand both QTL and QCT operating margins."
Accordingly, the authors conclude, that "[o]verall, we believe Qualcomm is well positioned to post strong earnings growth in F2013 and beyond due to stable royalty rates, strong market share for integrated chipsets, and growth of 3G devices in emerging markets," and reiterated their Buy rating on the company.