Drake, The highest I've seen from a "reliable source" is $150. But then again this is Lehman's report on QCOM 6/23/99. Price target $150-$165. Today's close? $148.
Then again "reliable sources" were calling CATP a BUY to STRONG BUY up till the day the announced earnings shortfall. Those who bought the previous day got hosed listening to "reliable sources". To the tune of 35% haircut.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>Complete Lehman report from 6/23.....
lehman.com
Headline: QUALCOMM:Happy Travels With Mgmt, Strong Trends, Ests & Target Raised, Buy
Author: Tim Luke (212)526-4993Rating: 1Company: QCOMCountry: EPS CUS
Industry: TELECMTicker : QCOM Rank(Old): 1-Buy Rank(New): 1-Buy
Price : $130 11/16 52wk Range: $121-19 Price Target (Old):$150
Today's Date : 06/21/99 Price Target (New):$165Fiscal Year : SEP
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EPS 1998 1999 2000 2001QTR. Actual Old New Old New Old New
1st: 0.29A 0.33A 0.33A - -E - -E - -E - -E
2nd: 0.13A 0.41A 0.41A - -E - -E - -E - -E
3rd: 0.17A 0.65E 0.68E - -E - -E - -E - -E
4th: 0.27A 0.72E 0.76E - -E - -E - -E - -E
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Year:$ 0.85A $ 2.11E $ 2.18E $ 2.78E $ 3.02E $ - -E $ 3.70E
Street Est.: $ 2.01E $ 2.02E $ 2.67E $ 2.71 $ 3.61E $ 3.61E
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Price (As of 6/17): $119 15/16 Revenue (1999): 3.6 Bil.
Return On Equity (99): N/A Proj. 5yr EPS Grth: 35.0 %
Shares Outstanding: 148.0 Mil. Dividend Yield: N/A
Mkt Capitalization: 17.75 Bil. P/E 1999; 2000 : 56.8 X; 43.1 X
Current Book Value: $6.86 /sh Convertible: YES
Debt-to-Capital: 99.8 % Disclosure(s): C, A
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* After spending several days travelling with senior QUALCOMM management
visiting investors in Europe, we maintain the wireless industry innovator and
CDMA pioneer is continuing to experience strong trends across its all three
of its core businesses of CDMA chipsets, handsets, and royalties.
* Believe QUALCOMM's chipset unit has seen exceptionally robust trends in
third quarter 1999 with sales now likely to exceed our estimate of $260
million versus $230 million in second quarter 1999 and visibility remaining
good through fourth quarter 1999. Upside in fiscal 2000 could come from
discussions with key target accounts; Ericsson, Motorola, Kyocera, and even
Nokia potentially leading to new orders.
* QUALCOMM's handset unit continues to make strides in improving operating
margins with new ThinPhone seeing strong demand. Official launch of
ThinPhone by Sprint PCS over next several weeks could coincide with new order
announcements. Delays in launch of dual-mode offerings by rivals, i.e., Nokia
also helping (sales may reach $450 million in third quarter 1999 versus $400
million in second quarter 1999).
* CDMA royalty revenues should sustain impressive growth as network rollouts
gain momentum in Japan, Brazil, and China and as sub growth accelerates in
Korea and the United States with key vendors such as Nokia and Motorola
releasing new handsets. Royalties to move from $77 million in second quarter
1999 to at least $85 million in third quarter 1999.
* Based on strong revenue and margin trends, our high end earnings estimates
move upwards for fiscal 1999 from $2.11 to $2.18 and for fiscal 2000 from
$2.78 to $3.02. Continue to believe these estimates are likely to be revised
steadily upwards as CDMA gains momentum around the world. Reiterate our 1
Buy rating and raise our price target from $150 to $165 or 40-45 times our
initial calendar 2001 estimate of $3.90
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