QCOM - Qualcomm downgraded as Citi says 5G upside is 'likely over'

Expecting "more instances of downside as the year progresses," Citi downgrades Qualcomm (QCOM) from Buy to Neutral and cuts the price target from $194 to $165.Analyst Christopher Danely notes that QCOM reported mixed results and a margin outlook that missed estimates. In FQ1, gross margins decreased 20 bps Q/Q and fell below Citi's estimate due to mix. For FQ2, the EPS guidance was $1.35 versus the $1.43 estimate on lower margins.Danely says the margins show that the "bulk of 5G upside is likely over."Qualcomm shares are down 6.6% pre-market to $151.67.Yesterday, Qualcomm reported a top-line miss and issued a soft current quarter profit guidance.

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Qualcomm downgraded as Citi says 5G upside is 'likely over'