Technology major and software company Qualcomm (NASDAQ: QCOM) recently revealed that it has completed the acquisition of a mobile network automation and management solution services provider, Cellwize. The financial terms of the deal have been kept under wraps.
Shares of the company declined 3.4% on Monday, but the fall can be attributed to wider market concerns. The stock, however, recovered 1.3% to close at $130.30 in the extended trading session.
With the addition of Cellwize’s cloud-hosted management platform to its repertoire, Qualcomm is expected to enhance its offering in the cloud and 5G space.
The buyout will allow Qualcomm to broaden its Open RAN (Radio Access Network) deployment, along with 5G private network deployments, and enable cloud-based cellular infrastructure innovation.
This will pave the way for simple network management and enhanced network architecture flexibility for organizations and increased ease of use for customers.
Stock Rating
On June 13, KeyBanc analyst John Vinh reiterated a Buy rating on the stock with a price target of $220, which implies upside potential of 70.9% from current levels.
The Street has a Moderate Buy consensus rating on the stock based on 12 Buys and seven Holds. QCOM’s average price target of $193.24 implies that the stock has upside potential of 47.29% from current levels.
Smart Score
Qualcomm scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have declined 6.3% over the past year.
Conclusion
Qualcomm’s move to join hands with a leading player like Cellwize will help the company offer its unique functionalities to enterprise customers looking to strengthen their cloud capabilities.
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