Qualcomm Inc QCOM

Intel and Qualcomm: We Maintain Fair Value Estimates Despite WSJ’s Reports of Takeover Talks

We intend to maintain our $21 fair value estimate for no-moat Intel and $180 for narrow-moat Qualcomm following The Wall Street Journal's report on Sept. 20 that Qualcomm "made a takeover approach to rival Intel in recent days." No deal price was discussed in the report, and we agree with the Journal's assessment that there would be significant antitrust scrutiny around such a deal, so we're hesitant to believe that a bid to take over Intel that would appeal to Intel shareholders is imminent. Intel's shares rose 3% on Sept. 20 while Qualcomm fell 3%, perhaps signaling to the latter firm that Qualcomm shareholders might not be thrilled with such a takeover.