Market Overview

UPDATE: Canaccord Genuity Downgrades Spreadtrum Communications to Hold on Margin Challenges

Related SPRD
Spreadtrum Announces Receipt by Tsinghua Unigroup of Regulatory Approvals for Merger
Earnings Scheduled For November 11, 2013

Canaccord Genuity reduced its rating on Spreadtrum Communications (NASDAQ: SPRD) from Buy to Hold and lowered its price target from $22 to $20.

Canaccord Genuity said, "Spreadtrum reported solid Q3/12 results but issued sales guidance below our expectations when factoring the unexpected continuation of their product acceptance programs and deferred revenue. Further, despite guidance for Q4/12 smartphone solution sales to increase 64% sequentially to 18M units, Spreadtrum management guided to sequentially flat Q4/12 gross margin. Going forward, we believe pricing pressure in both the 2G feature phone and EDGE smartphone markets, increased TD-SCDMA smartphone competition, and higher operating expenses given Spreadtrum's aggressive roadmap will result in lower margins than our previous expectations."

Spreadtrum Communications closed at $21.33 on Thursday.

Latest Ratings for SPRD

DateFirmActionFromTo
Aug 2013Chardan CapitalDowngradesBuyNeutral
Aug 2013Topeka CapitalDowngradesBuyHold
Aug 2013JefferiesDowngradesBuyHold

View More Analyst Ratings for SPRD
View the Latest Analyst Ratings

Posted-In: Canaccord GenuityAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (SPRD)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters