Chardan Changes Sentiment, Now Says Spreadtrum Should Accept Unigroup's $28.50/Share Offer
Chardan analyst Jay Srivasta, who last week said Unigroup's offer for Spreadtrum (NASDAQ: SPRD) was lower than expected and undervalued the company's market position in specific fields, is now recommending Spreadtrum accept the $28.50 per share offer.
Srivasta does not expect other wireless baseband chip companies to outbid Unigroup. Rejecting Unigroup's offer may be seen as "a slap in the face" and negatively impact Spreadtrum's plans to push expansion in China, according to Srivasta.
The Chardan analyst warned Spreadtrum's Q3 outlook could be lowered as demand in the smartphone category is indicating shortages.
Spreadtrum shares have remained relatively stable since last week's offer was announced. The stock is up 0.8 percent to $26.46 at last check.
Latest Ratings for SPRD
|Aug 2013||Topeka Capital||Downgrades||Buy||Hold|
|Aug 2013||Chardan Capital||Downgrades||Buy||Neutral|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.