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

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

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.

Posted-In: Daiwa Capital MarketsAnalyst Color Downgrades Analyst Ratings

 

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