Qualcomm Inc (NASDAQ: QCOM) is up nearly 30% over the past month, but the stock isn’t done trending higher, according to Cerity Partners’ Jim Lebenthal.
“It’s got further room to run … I think it will go well above $200 a share,” Lebenthal said Monday on CNBC’s “Fast Money Halftime Report.”
Lebenthal thinks Qualcomm deserves a price-to-earnings multiple around 20 based on its growth rate and earnings.
With next year’s estimates exceeding $10 per share, “it’s just a matter of time before it gets above $200. It might even do it this year,” he said.
The bear case for Qualcomm is that Apple Inc (NASDAQ: AAPL) could end up making its own chips, but Lebenthal doesn’t see such as a possibility. He described the intellectual property of Qualcomm as an “impregnable moat.”
See Also: Where Qualcomm Stands With Analysts
“This should be a 20 times multiple stock no question about it,” Lebenthal emphasized.
QCOM Price Action: Qualcomm is making new 52-week highs during Monday’s trading session.
The stock was up 1.72% at $167.80 at time of publication.
Photo: courtesy of Qualcomm.
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