Citi analyst Christopher Danely downgraded Qualcomm’s stock from buy to neutral, after a ”mixed” earnings report, according to MarketWatch. Qualcomm’s gross margins weakened and came below Citi’s projections despite the first-quarter revenue and earnings per share exceeding Danely’s expectations.

  • Citi upgraded Qualcomm last year based on share gains and the 5G upgrade cycle.
  • Danely believes Qualcomm’s upsize is over and expects more downsides, such as lower margins.
  • Qualcomm’s margins came under pressure during the 4G wave as the upgrade cycle “matured,” a trend Danely expects to repeat with the 5G upgrade cycle.
  • Danely’s new price target of Qualcomm’s stock is $165, down from $194.

Qualcomm stock is currently declining. QCOM: NASDAQ is down 8.90%