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Qualcomm (QCOM) is scheduled to report results of its fiscal first quarter after the market closes on January 31 with a conference call scheduled for 4:45 pm ET. What to watch for:

GUIDANCE: Along with its last report, Qualcomm guided for Q1 adjusted earnings per share of $2.25-$2.45 on revenue of $9.1B-$9.9B. At the time, analysts were expecting the company to report Q1 EPS of $2.25 on revenue of $9.26B, but those figures have since risen to $2.37 and $9.52B, respectively.

PT CHANGES: Last week, BofA raised the firm's price target on Qualcomm to $173 from $145 and kept a Buy rating on the shares ahead of the company's scheduled Q1 earnings report on January 31. Driven by continued improvements in Android handset demand and better channel inventories, the firm expects "solid" Q1 results, said the analyst, who noted that comps are getting easier and also believes recent easing of the Chinese monetary system may help smartphone demand in China and could potentially support growth and earnings.

Meanwhile, Wells Fargo also raised its price target on the stock last week to $120 from $110 and mainttained an Underweight rating on the shares, noting that mobile chip companies have entered an ST period of outperforming low expectations. In the mobile handset market, Wells is now in a period of inv normalization whereby mobile chip sales are accelerating, but handset sales may remain growth-challenged long-term. The firm expects Qualcomm to report Q1 results at or slightly above guidance.

Additionally, Canaccord analyst T. Michael Walkley raised the firm's price target on Qualcomm to $175 from $152 and kept a Buy rating on the shares. The firm said with on-device generative AI, a strong product roadmap, improving cost discipline, and improving Android smartphone inventory levels, they anticipate reaccelerating revenue and EPS growth in F2024 and F2025.

CANTOR INITIATION: Recently, Cantor Fitzgerald initiated coverage of Qualcomm with a Neutral rating and $150 price target. The firm expects Qualcomm to be a leader at the edge for artificial intelligence, though suspects use cases are unlikely until the 2025-2026 time frame. The company's smartphone exposure continues to be the dominant driver for the stock near term, and Cantor do not expects Arm PCs "to move the needle over the near to medium term," the analyst told investors in a research note.

CITI UPGRADE: Earlier this month, Citi upgraded Qualcomm to Buy from Neutral with a price target of $160, up from $110. The analyst also opened a "90-day positive catalyst watch" on the shares. Citi's industry checks a CES indicated inventory replenishment in the wireless end market continues, which should benefit revenue and margins at Qualcomm, the analyst told investors in a research note. The firm expects upside to Qualcomm's earnings print and guidance. Citi also expects the replenishment to continue at least through Q1 of 2024 and says Qualcomm should gain share at Samsung (SSNLF) as well.

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