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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (8824)	7/27/2001 12:27:35 PM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

CSFB Analyst: Qualcomm Valuation Doesn't Warrant Upgrade NEW YORK (Dow Jones)--Despite the bullishness around Qualcomm Inc.'s (QCOM) earnings, the stock's valuation is too high to justify an upgrade, said Tim Long, an analyst at Credit Suisse First Boston Corp. "The company's results for the June quarter were very solid," but given growth targets, the stock price doesn't warrant an upgrade, Long told CNBC Friday. CSFB has a hold rating on Qualcomm. The wireless products provider, hit by the economic slowdown and items related to its investment in satellite operator Globalstar Telecommunications LP (GSTRF), posted a steep net loss for its fiscal third quarter and slightly lowered the outlook for its full fiscal 2001 year. Still, investors Friday rallied around the fact that Qualcomm, excluding items, earned 22 cents a share, beating analysts' lowered expectations by a penny. Several analysts also upgraded their ratings on the San Diego company's stock. Long is targeting 10% sequential revenue growth for Qualcomm's fiscal fourth quarter, and 15% revenue growth next year, he said. That outlook is in line with industry views, but "given the valuation, we have a hard time changing the rating unless see the stock growing faster than the industry in the near-term," he said. Long is "cautious on the entire sector at this point as we go into the Fall, and see a rebound in the group" by the year's end, he said. Qualcomm shares were recently up $3.85, or 6.5%, to $63.51, on volume of 11.7 million, compared with average daily volume of 12.1 million. -By Kaja Whitehouse, Dow Jones Newswires; 201-938-5393; kaja.whitehouse@dowjones.com (END) DOW JONES NEWS 07-27-01 12:24 PM * end of story *