|Forbes.com, Spring, 2012. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.|
Following a strong second quarter of fiscal 2012 for Qualcomm (QCOM) Canaccord Genuity technology analyst Michael Walkley noted the company guided third quarter of fiscal 2012 below his expectations “as supply constraints for Qualcomm’s leading 28nm [nanometer] solutions, combined with increased operating expenses to drive 28nm supply, resulted in the lower June quarter EPS guidance.”
However Mr. Walkley said in a note to clients “a sharp ramp in 28nm supply during Q1/F2013 [first quarter of fiscal 2013] and believe Qualcomm is well positioned to post strong earnings growth due to stable royalty rates, strong connected device sales, increasing market share for integrated chipsets, and accelerating 3G device sales in emerging markets.”
He said that, “Qualcomm remains a top pick” and reiterated his BUY rating and $80 target on the company.