UPDATE: Morgan Stanley Upgrades Spreadtrum Communications to Overweight

Morgan Stanley raised its rating on Spreadtrum Communications SPRD from Equal-Weight to Overweight and increased its price target from $18.31 to $24. Morgan Stanley commented, "We are more confident on its feature phone and smartphone businesses. Our 2013e EPS is 20% above consensus, and our new US$24 price target implies 30%+ upside potential. … We lift our feature- and smart- phone unit forecasts, but lower feature phone ASP. Net/net, we now model US$842.1mn in 2013 revenues (prior US$787.5mn), and we are 20% above Bloomberg 2013e consensus GAAP EPS of US$2.23." Spreadtrum Communications closed at $17.68 on Wednesday.