QUALCOMM, Inc.(NASDAQ:QCOM) recent Vijay Rakesh of Sterne Agee rated the stock as a Buy this morning. His price target on Qualcomm is $75. He has increased his estimates to indicate rises in chipset shipments as Samsung’s new Galaxy S4 hits the market and as per rumors, Apple may be releasing an iPhone 5S pretty soon.
Rakesh maintains his position on his estimate for the March quarter of $5.92 in revenue, however, he increases his estimate for the June quarter of this year to $5.99 billion. Rakesh predicts Qualcomm would clean sweep the new smartphones with the virtue of baseband shipments or application processor shipment.
In other news, Deutsche Telekom has said that it has put forward its best and ultimate proposal for merging MetroPCS Communications Inc(NYSE:PCS) with its T-Mobile USA sector after a number of institutional investors have objected to the regulations of the terms of the agreement that was first offered in October of last year.
Deutsche has mentioned in his statement that it will cut down the debt that has accorded the new entity by $3.8 billion. Deutsche will also be cutting down the rate of interest on the shareholder loans by a margin of 50 basis points. Deutsche will be extending the lock-up period after the closing of the agreement. During that period, the company would not be able to sell any shares included in the combined entity.
Deutsche has stated while explaining the conditions of the new agreement that the lower rate of interest was an outcome of the new capital structure of the combined company, the level of interest rate of MetroPCS and the enhanced environment for capital markets over the past few months.
Roy Behren of The Merger Fund, Westchester Capital ad Mike Shannon feels that the development is a highly positive one.