Qualcomm stock streaks past $100 as Huawei settlement clears last barrier to 5G licensing
published 01.08.2020 18:01
Qualcomm Inc.’s stock price soared past its former high of $100 set two decades ago on Thursday after the chip maker revealed it settled a licensing dispute with the world’s largest smartphone maker, clearing the way as the new 5G standard rolls out.
In addition to topping Wall Street earnings estimates for the quarter on Wednesday, Qualcomm announced a long-awaited patent-license settlement with Huawei that it had been teasing as far back as a year ago when it recorded results of a settlement with Apple Inc.
Susquehanna analyst Christopher Rolland, who has a positive rating on Qualcomm and hiked his price target to $125 from $110, in a note titled “Huawei...Out.a.the.wei,” called the settlement the “star of the show” in Wednesday’s earnings report.
Cowen analyst Matthew Ramsay, who has an outperform rating and hiked his price target to $130 from $115, said the Huawei settlement unlocked about a $1 or more a share of earnings “from purgatory.”
J.P. Morgan analyst Samik Chatterjee, who has an overweight rating and raised his price target to $120 from $108, said Qualcomm’s leadership in 5G technology ahead of the rollout was “pivotal” to the settlement.