Mizuho says Qualcomm's (NASDAQ:QCOM) top-line results could be at risk due to the FTC ruling. The company will report earnings on July 31.
Last week, U.S. district Judge Lucy Koh ruled there was no reason to halt the issued injunctions while Qualcomm's appeal is pending.
Analyst Vijay Rakesh says the ruling "could potentially challenge the six-year supply agreement with Apple signed in April."
Rakesh expects near-term outlook softness due to weak handsets, multiple OEMs entering re-licensing in H2 and potentially negotiating lower 5G royalty rates, and the upcoming LGE renegotiation.
Mizuho maintains a Neutral rating and raises QCOM's target from $65 to $68, citing improved semi multiples and valuations in the past month.
QCOM shares are up 1.1% to $74.52. The company has an Outperform average Sell Side rating.
