Cantor Fitzgerald Raises Qualcomm Price Target to $200

Cantor Fitzgerald analyst C.J.

Muse raised the price target on Qualcomm (NASDAQ: QCOM) to $200.00 (from $150.00) while maintaining a Neutral rating.

“We would argue that with today’s Data Center optionality, shares would trade at a floor multiple of 15x the likely $11-12 in EPS in CY27 (including $3B in Data Center revenues).

That equates to a share price of $165-180.

Oppositely, with QCOM mgmt likely guiding EPS closer to $25, including DC revenue contributions of at least $30B, we would expect the market to be thinking closer to $300 (equates to 18x discounted to 1yr from today).

Thus, a likely trading range is $165-300.

As for our view, we remain highly skeptical of QCOM’s CPU success outside of the server Head Node (where share will be limited), and expect XPU and Custom ASICs to take a great deal of time for real and sustained success.

This said, if we do bake in $10B in DC revs, we do see FY31 EPS tracking to $20. Assuming a ~15x discount back to 1yr from today, we see a fair value of $200.

With our new price target of $200, we reiterate our Neutral rating given limited upside to today’s share price (i.e., particularly on relative multiples into CY30-31 to Compute peers NVDA, AVGO, and AMD).”

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.

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.