UPDATE: Topeka Capital Markets Initiates Coverage on Spreadtrum Communications Following Growth in Revenue

In a report published on Thursday, analysts at Topeka Capital Markets initiated coverage on

with a Buy rating and a $23 PT. In the report lead, analyst Suji De Silva commented that, "We are initiating coverage of Spreadtrum Communications with a Buy rating and a $23.00 price target. Since 2008, SPRD has grown revenue at a 60% CAGR. With a leadership position in China's TD mobile standards and closer relationships with the Chinese government, we regard SPRD as well positioned to benefit from growth in low-end smartphones in China and emerging markets. We believe SPRD's growing customer presence across global Tier-1 handset manufacturers provides evidence of the Company's momentum in the global baseband market." Spreadtrum Communications closed on Thursday at $19.63