UPDATE: JP Morgan Upgrades Spreadtrum Communications to Overweight, Positive China Mobile Phone Tender

JP Morgan JP Morgan raises its rating on Spreadtrum Communications

from Neutral to Overweight and increases its price target from $15 to $22. JP Morgan notes, "Spreadtrum won two out of three TD smartphone designs picked by China Mobile in its 2Q12 tender, a positive surprise to the market. We think a rerating is justified given that 1) its monthly smartphone chipset shipments should exceed 1MM units in 3Q12, and 2) new leadership at China Mobile is supportive of TD development." SPRD closed at $16.49 on Friday.