12:13 PM EST, 11/07/2024 (MT Newswires) -- Qualcomm's ( QCOM ) fiscal Q4 results were mainly in line on smartphones, while the company saw an upside from automotive and Internet of Things revenues, Morgan Stanley said in a Thursday note.

"The outlook also looks strong, and Qualcomm ( QCOM ) expects greater than 40% sequential growth from Chinese OEMs as they are accelerating and increasing the scale of their launches to incorporate [Qualcomm's ( QCOM )] new premium chipset," the investment firm said.

Also, the company's automotive segment "continues to be resilient in a difficult market," Morgan Stanley said.

Auto revenue exceeded expectations as the company continued to grow content in vehicles. Despite a slowing overall auto market, Qualcomm's ( QCOM ) share gains and new model launches helped offset any weakness, according to the note.

"We are expecting more updates in their Auto & IoT investor day later this month, but we think that they are more than on track to achieve their $4 [billion] revenue in 2026," the report said.

In the IoT sector, the September quarter was stronger than anticipated, driven by new products in PC and extended reality, along with the normalization of channel inventory, Morgan Stanley said.

Morgan Stanley forecasts earnings per share of $2.66 and $10.3 billion in revenue for Qualcomm's ( QCOM ) March quarter. For 2025, the brokerage is modeling $42.6 billion in revenue and $11.32 EPS, from previous estimates of $43.6 billion and $11.23 EPS.

Morgan Stanley kept its equal-weight rating on the company and trimmed the price target to $204 from $207.

Price: 174.08, Change: +1.09, Percent Change: +0.63