Mizuho analyst Vijay Rakesh cut his rating on Qualcomm Inc. shares (QCOM) to neutral from buy on Thursday, after a federal judge sided with the Federal Trade Commission ( ) and ruled that the company violated antitrust law with its patent royalties. "The limited clarity as the case goes to appeals to the Ninth District and potentially the Supreme Court, and uncertainty if recent license agreements with Apple (AAPL), Samsung and China NDRC can still be upheld, inserts a significant overhang on Qualcomm," Rakesh wrote. The ruling "could potentially drive EPS down 50%+ in a worst case scenario," he continued. Shares are off 2.6% in Thursday trading after dropping nearly 11% in Wednesday's session. The stock remains up 19% on the year, as the S&P 500 has risen 13%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 23, 2019 15:05 ET (19:05 GMT)
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