Qualcomm stock declines after Wells Fargo turns bearish

Wells Fargo analyst Gaby Mobley downgraded shares of Qualcomm Inc.
QCOM,
-0.19%
to underweight from equal weight Monday, writing that the reasoning behind the ratings change is consistent with his October downgrades of Qorvo Inc.
QRVO,
-0.06%
and Skyworks Solutions Inc.
SWKS,
-0.50%.
“That is, once investor sentiment toward the chip sector turns more positive, or once investors are convinced we’ve reached a trough in the chip cycle, we believe shares of companies w/high smartphone exposure should underperform the broader chip sector,” Mobley wrote. He anticipates that Qualcomm’s stock could trade at a discount to peer names in part given expected negative investor attitudes toward the “no-growth mobile handset market.” He kept a $105 price target on shares of Qualcomm, which have dropped 35% over the past 12 months as the S&P 500
SPX,
+0.28%
has declined by about 17%.