BofA Securities Downgrades Qualcomm to Neutral

BofA Securities analyst Tal Liani downgraded Qualcomm (NASDAQ: QCOM) from Buy to Neutral with a price target of $155.00 (from $215.00).

“We are downgrading Qualcomm from Buy to Neutral and lowering our PO from $215 to $155, based on 13.5x FY27E P/E vs 17x prior, on a combination of cyclical and structural weakness in handsets.

The handset market, which makes up 74% of total QCT revenue, is expected to see a ~15% decline in unit volume this year vs -2% prior expectations, related to memory pricing volatility, with similar weakness flagged by ARM and Mediatek.

In addition, the company has previously noted it is losing 25% share at Samsung, share at Apple is expected to decline in September, and China is likely to see seasonal slowdown after last quarter’s handset launch and holiday-driven strength.

Net net, we model QCT revenues to decline -1.5% in FY26. While the stock is relatively inexpensive, currently trading at 12x FY27E P/E, we see limited near term catalysts for the stock.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.