Qualcomm: Canaccord Genuity cuts target price

(CercleFinance.com) - Canaccord Genuity has cut its target price on Qualcomm from 105 dollars to 90 dollars after a US District Court of Northern California ruled that the chipmaker was in violation of antitrust law.


According to the Canadian broker, the decision could materially change the long-term licensing model and rates of QTL, the company's licensing business, with Qualcomm having to renegotiate its licensing deals.

"This ruling certainly could change the behavior of some of Qualcomm's licensees in terms of honoring current deals and thus could place our long-term QTL estimates at risk," Canaccord said, while keeping a "buy" rating on the stock.

The shares are currently down 4.2% at 66.4 dollars on the Nasdaq.

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