Latest news with #TalLiani
Yahoo
3 days ago
- Business
- Yahoo
BofA Sees Qualcomm (QCOM) Riding IoT and Automotive Growth to $200 Target
QUALCOMM Inc. (NASDAQ:QCOM) is one of the best large-cap tech stocks to buy now. On July 31, Bank of America Securities analyst Tal Liani reaffirmed his Buy rating on Qualcomm and kept the $200 price target. His view comes after the company's Q3 FY 2025 results, which showed continued strength outside the handset market, especially in automotive and IoT, both delivering solid growth. Liani noted that these areas now represent a sizable share of QCT revenue (Qualcomm CDMA Technologies segment) and should expand further in the years ahead. Kārlis Dambrāns/Flickr Looking at the finer detail of the results, for Q3, the company's total revenue surged 10% year-over-year to $10.4 billion, and adjusted EPS rose 19% to $2.77 due to better operating leverage. While revenue in its licensing business (QTL) rose 4%, QCT revenue was up 11%. Within QCT, IoT (+24%) and Automotive (+21%) stole the show, while Handsets revenue was also up a healthy 7%. Notably, for Q4, the company expects Handset revenues to grow around 5% sequentially, whereas IoT is expected to remain flat. Liani believes that while handset demand, particularly in China, remains a headwind, Qualcomm's upbeat guidance for the following quarter points to a rebound in that segment. He also sees meaningful upside from the company's push into data center solutions, where it is aiming for leadership in CPU and NPU technologies. Taken together, these factors underpin the analysts' constructive outlook on the stock. QUALCOMM Inc. (NASDAQ:QCOM) is a semiconductor technology company that specializes in wireless communications. It engages in 5G technology, supplies chipsets and system-on-chip solutions for mobile devices, automotive applications, and the Internet of Things (IoT). Its Snapdragon processors are widely used across smartphones and connected devices. While we acknowledge the potential of QCOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and 10 Most Oversold Semiconductor Stocks So Far in 2025. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
31-07-2025
- Business
- Yahoo
Qualcomm's China Exposure A Key Risk Despite Xiaomi Partnership: Analyst
Qualcomm (NASDAQ:QCOM) posted a solid fiscal third-quarter performance on Wednesday, boosted by continued growth in its automotive and IoT businesses. However, a cautious fourth-quarter outlook and lingering concerns over handset market volatility tempered investor enthusiasm, sending shares down more than 7% in Thursday trading. Analysts across Wall Street responded with cautious optimism. Rosenblatt Securities' Kevin Cassidy, who maintained a Buy rating and a $225 price forecast, described the quarter as a 'solid beat'.While fourth-quarter projections may not inspire near-term excitement, Cassidy underscored Qualcomm's strength in edge AI, backed by its multi-generation NPU roadmap. He trimmed his fourth-quarter forecast slightly to $10.65 billion in revenue and $2.85 EPS, and now expects fiscal 2025 revenue of $43.52 billion and EPS of $11.88. Bank of America Securities analyst Tal Liani also reiterated a Buy with a $200 forecast, emphasizing Qualcomm's progress in diversifying beyond smartphones. While handset revenue was marginally below expectations due to mix and timing issues, automotive and IoT gains, up 21.3% and 23.7% respectively, provided an effective offset. Liani sees handset revenue rebounding in the next quarter, with forward guidance implying aggregate third-quarter and fourth-quarter performance should beat Street expectations. He also pointed to a stronger-than-expected operating margin that contributed to a 5-cent EPS beat. Liani noted that non-handset revenue now comprises 30% of QCT sales, up from 25% three years ago, and is projected to grow 16% in 2025 and 20% in 2026. He highlighted strong design momentum in automotive, with 12 digital chassis wins and 50 new vehicle launches this year. IoT, meanwhile, is being propelled by AI PCs and smart glasses adoption. However, Liani flagged China as a key risk, with the region accounting for 68% of QCT handset revenue. Qualcomm's expanded relationship with Xiaomi (OTC:XIACF) and leadership in the mid-to-high-end segment provide some insulation, but rising domestic competition, particularly from MediaTek, remains a threat. He also pointed to Qualcomm's longer-term ambitions in the data center space as a potential future catalyst. The company, which recently acquired Alphawave, is leveraging its CPU and NPU assets and has entered advanced talks with a major hyperscaler. Though material revenue from this push isn't expected until 2028, Liani views it as a promising growth avenue. J.P. Morgan's Samik Chatterjee echoed these sentiments, reiterating an Overweight rating and a $200 price forecast. He noted that the strength in IoT and automotive helped counteract weaker handset performance. With the fourth quarter guidance pointing to a handset recovery, Chatterjee anticipates combined third and fourth-quarter revenue to exceed prior forecasts. Looking ahead, he forecasts continued momentum in Auto and IoT, projecting 35% and 20% growth respectively in fiscal 2025, with handset sales expected to rise 10%. While Qualcomm faces a revenue headwind from the expected loss of Apple (NASDAQ:AAPL) business, Chatterjee highlighted management's confidence in non-Apple revenues. He anticipates overall revenue growth will slow to single digits in fiscal 2026 and 2027, but expects non-Apple handset revenue, Auto, and IoT segments to drive a return to double-digit growth beyond that period. While Qualcomm's strong quarterly execution reinforces its diversification strategy and long-term AI positioning, near-term caution around the handset cycle and China exposure continues to cloud the outlook for some investors. Price Action: QCOM stock is trading lower by 7.61% to $147.04 at last check Thursday. Photo via Shutterstock Latest Ratings for QCOM Date Firm Action From To Feb 2022 Mizuho Maintains Buy Feb 2022 Morgan Stanley Maintains Overweight Feb 2022 JP Morgan Maintains Overweight View More Analyst Ratings for QCOM View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? QUALCOMM (QCOM): Free Stock Analysis Report This article Qualcomm's China Exposure A Key Risk Despite Xiaomi Partnership: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
18-06-2025
- Business
- Yahoo
CrowdStrike's (CRWD) Strong Fundamentals Meet a Valuation Firewall
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the 10 best growth stocks to buy according to billionaires. With a YTD share price appreciation of over 40%, CRWD is one of the best-performing stocks in the cybersecurity space. However, the strong rally has raised doubts about the upside potential from current levels. Recently, Wells Fargo released a mid-year update that expressed a more constructive view on software stocks for the second half of 2025. The firm expects the sector to recover as macro pressures ease and corporate tech budgets begin to stabilize. However, it advises a selective approach over the coming months. A cybersecurity expert monitoring the security of the company's assets, emphasizing the importance of data protection. According to the report, the first half of the year saw increased volatility, with tech stocks fluctuating sharply and investor sentiment dampened by slower-than-expected returns from AI investments. A recent survey by the bank revealed that IT spending increased by just 2% year-over-year in the first half of the year. Still, areas like cloud infrastructure, cybersecurity, and generative AI remain bright spots, showing continued strength despite broader caution in tech spending. Despite this improving outlook for the sector, CrowdStrike Holdings Inc. (NASDAQ:CRWD) has faced mixed analyst opinions and experienced several downgrades in June. In the first week of June, Bernstein analyst Peter Weed downgraded CrowdStrike (CRWD) to Market Perform from Outperform, keeping his price target of $371. While the analyst likes the stock fundamentally, he believes the stock is expensively valued at current levels. In the same week, Bank of America Securities analyst Tal Liani downgraded the stock to Hold from Buy, citing limited upside potential. That said, he raised his price target to $470 from $420 as he now factors in a higher sector multiple. On the positive side, analysts from RBC Capital, Goldman Sachs, and Piper Sandler, have reiterated their Buy ratings, with price target ranging between $505 and $530. CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a cybersecurity company specializing in cloud-native endpoint protection, threat intelligence, and incident response services. Its flagship Falcon platform leverages artificial intelligence (AI) and behavioural analytics to detect and prevent cyber threats in real-time. While we acknowledge the potential of CRWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
BofA Raises Zscaler's (ZS) PT to $340 Amid Rising Platform Adoption
Zscaler Inc. (NASDAQ:ZS) is one of the 10 best growth stocks to buy according to billionaires. On June 9, Bank of America analyst Tal Liani raised his price target on Zscaler to $340 from $285, while maintaining a Buy rating, following the company's CEO, Jay Chaudhry's, presentation at the Bank of America's 2025 Global Technology Conference (GTC). The analyst highlighted sustained customer demand and increasing platform adoption as key factors contributing to the higher valuation. A computer engineer analyzing a server network for cyber security threats. On June 5, management highlighted several positive trends during the GTC event. In the last quarter, over 70% of new annual contract value (ACV) came from upselling to existing clients, while new logo ACV grew 40% year-over-year. Zscaler Inc. (NASDAQ:ZS) is expanding its reach beyond core secure web gateway services, with strong traction in data security and Agentic operations now representing nearly $1 billion in annual recurring revenue (ARR). Notably, data security alone accounted for $350 million in ARR last quarter. Its recent acquisition of Airgap Networks highlights a deeper investment in cybersecurity advancements. While competition and pricing pressure remain, Zscaler's product differentiation and focus on efficiency appear to be supporting its growth outlook. In Liani's view, rising demand for Zero Trust solutions justifies a higher multiple, primarily as Zscaler executes well on both innovation and customer expansion. Zscaler Inc. (NASDAQ:ZS) is a provider of cloud-based cybersecurity solutions. Its Zero Trust architecture ensures secure connections between users, devices, and applications, regardless of location. While we acknowledge the potential of ZS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
29-05-2025
- Business
- Yahoo
SentinelOne's Profitability And Growth Trajectory Less Promising Than Competitors: Analyst
SentinelOne, Inc. (NYSE:S) shares are trading lower on Thursday after its disappointing post-market Q1 earnings release the previous day. The cybersecurity company reported revenue of $229.03 million, beating the consensus estimate of $228.35 million. Adjusted earnings of two cents per share were in line with analyst estimates. The company lowered its full-year 2026 revenue guidance from $1.007 billion to a range of $996 million to $1.001 billion. Analysts were expecting full-year revenue of $1.01 analysts downgraded/revised the price forecast for the stock. B of A Securities analyst Tal Liani downgraded the company from Buy to Neutral, cutting the price forecast from $24 to $21. The analyst writes that the endpoint security market remains appealing but has three main concerns. SentinelOne's results have been uninspiring for several quarters now, marked by two consecutive quarters of reduced guidance, says Liani in an analyst note. The analyst writes that they previously viewed the guidance cut as a result of the new CFO resetting expectations but now see deteriorating business trends. The analyst raises concerns about SentinelOne's growth rate relative to its size and profitability compared to competitors like CrowdStrike. Despite similar growth rates, it operates from an 80% smaller revenue base and carries approximately 650 basis points lower profitability when adjusted for scale. The analyst also highlights that the stock's performance has lagged significantly, underperforming the NASDAQ by 1000 basis points year-to-date and 1860 basis points over the past 12 months. Liani anticipates challenges in meaningfully improving margins to persist, with the company focusing on smaller customers and MSPs. Goldman Sachs analyst Gabriela Borges revised the price forecast from $23.50 to $21.50 while maintaining a Neutral rating. The analyst writes that she believes SentinelOne is experiencing more varied business trends for two main reasons. First, their growth strategy relies heavily on acquiring new customers, where deal activity has slowed more significantly than existing clients. Second, they face persistent competitive pressure. Borges says that while she maintains a positive view of SentinelOne's core technology, this competitive environment, with vendors offering greater platform scale, remains an overhang. The analyst revised the revenue estimates for FY26, FY27, and FY28 to $997 million (from $1.008 billion), $1.202 billion (from $1.227 billion), and $1.413 billion (from $1.459 billion), respectively, owing to intense competition and the challenge of balancing revenue growth with profitability. Apart from this, several other analysts downgraded the stock, including: JP Morgan analyst Brian Essex downgraded the rating from Overweight to Neutral and lowered the price forecast from $22 to $19. Wells Fargo analyst Andrew Nowinski downgraded the stock from Overweight to Equal-Weight and lowered the price forecast from $22 to $18. Price Action: S shares are trading lower by 11.0% to 417.50 at last check Thursday. Read Next:Photo by Tada Images via Shutterstock Date Firm Action From To Mar 2022 Barclays Maintains Overweight Feb 2022 DA Davidson Initiates Coverage On Buy Jan 2022 Wolfe Research Initiates Coverage On Outperform View More Analyst Ratings for S View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SENTINELONE (S): Free Stock Analysis Report This article SentinelOne's Profitability And Growth Trajectory Less Promising Than Competitors: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
