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UPDATE: Daiwa Capital Markets Downgrades Spreadtrum Communications to Underperform Ahead of Earnings Call

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In a report published Friday, Daiwa Capital Markets analyst Eric Chen downgraded the rating on Spreadtrum Communications (NASDAQ: SPRD) from Buy to Underperform, and lowered the price target from $21.90 to $19.60.

In the report, Chen noted, “According to our market research, we believe Spreadtrum will announce upbeat 1Q13 results and strong 2Q13 revenue guidance during its 9 May earnings call. But looking into 2H13, we expect Spreadtrum's revenue growth to be limited by a pick-up in shipments in China's dual-core TD-SCDMA smartphone IC market in 2H13, which could mean increased competition for Spectrum. We forecast the 2Q13 revenue to rise by 21% QoQ, driven by the company's strong China smartphone IC shipments (mainly TD-SCDMA smartphone ICs). For Spreadtrum's China market, we forecast 20m smartphone IC shipments for 1Q13 (up 5% QoQ) and 25m for 2Q13 (up 25% QoQ), up from 19m units for 4Q12.”

Spreadtrum Communications closed on Thursday at $21.57.

Latest Ratings for SPRD

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

View More Analyst Ratings for SPRD
View the Latest Analyst Ratings

Posted-In: Daiwa Capital MarketsAnalyst Color Downgrades Analyst Ratings

 

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