Qualcomm Removed From FBR's 'Top Picks'

FBR & Co downgraded QUALCOMM, Inc. (NASDAQ: QCOM) from Market Perform from Outperform and removed the company from its "Top Picks" following news that Samsung Elect Ltd (OTC: SSNLF) would use its own chip in the Galaxy S6 model. The move away from Qualcomm represents a "material change" to the analysts' thesis, despite estimates that it will only be a $200 million impact to revenue.

FBR noted that it still expects Verizon Communications Inc. (NYSE: VZ) and Sprint Corp (NYSE: S) to need Galaxy S6 models with the Qualcomm chip due to legacy networks; however, Samsung's use of its own baseband is a clear change in signals.

In addition to downgrading Qualcomm and removing it from its Top Picks, FBR lowered its price target to $72 from $80.

Shares of Qualcomm were down 1.6 percent at $66.98. The company has lost 9.7 percent year-to-date.