Qualcomm is also poised to benefit from a de-escalation of trade tensions, says analyst Samik Chatterjee.
From a note to clients that landed on my desktop Thursday:
While the direct impact of tariffs across the coverage universe remains limited and there is no definitive trade policy as of yet from the Democratic nominee, Biden has emphasized reducing trade barriers and building an international coalition against China as opposed to unilateral tariffs.
We expect investors to view any de-escalation of the direct conflict between the interests of US and China to lead to a more predictable operating environment for companies with sizeable exposure both in relation to revenue and supply chain in China, allowing for Apple to be one of the primary beneficiaries.
Additionally, de-escalation would likely limit the interest of Chinese smartphone OEMs from strategically increasing their reliance on non-US suppliers to limit potential fall-out from further escalation in US-China relations, benefiting market share prospects for Qualcomm as well.
Maintains Overweight rating and $365 price target.
My take: Chatterjee will raise that soggy price target in the next two weeks.