Citigroup upgraded QCOM to "buy"
The shares of semiconductor concern Qualcomm, Inc. (NASDAQ:QCOM) are 1.6% higher in premarket trading, pacing to open up above $141 after Citigroup upgraded the stock to "buy" from "neutral" and hiked its price target by $50 to $160.
The analyst raised its revenue and earnings per share (EPS) guidance on Qualcomm, citing inventory replenishment in the handset space that they believe will continue through the first quarter of 2024.
While the majority of analysts are already optimistic, there's still some room for an unwinding of pessimism. Of the covering brokerage firms, eight still rate QCOM a "hold" or worse.
Should today's positive premarket action hold strong, the stock will open at its highest level in weeks. It will also move above short-term pressure at its 20-day moving average and a recent ceiling at the $140 level. Still, it will take a few more percentage points for Qualcomm stock to conquer its 3.9% year-to-date deficit.
Over the last 10 weeks, bullish bets have been the popular choice amongst options traders. Those looking to place their bets should consider options, as QCOM sports attractively priced premium. This is per its Schaeffer's Volatility Index (SVI) of 22% that ranks in the low 5th percentile of its annual range, implying lower-than-usual volatility expectations are being priced in.