UPDATE: Jefferies Lowers Sequans Communications PT

In a research report published today, Jefferies has lowered Sequans Communications' SQNS PT from $6 to $3 following the WiMAX sales collapse. According to Jefferies, “Sequans released a 4Q11 trading update (Dec'11) that saw the stock fall >30%. SQNS announced its largest customer's request to "take delivery of c.40% of the chips previously scheduled for delivery in December and to cancel the remainder of the scheduled shipment". This talks of a shuddering halt to HTC (70%+ sales) shipments into Sprint as the carrier fast transitions off of WiMAX - staggering however, is the expectation of no further shipments to this customer in 1Q12, which sees SQNS transition to an LTE-only play almost 1-2 years ahead of readiness.” Jefferies maintains its Hold rating on Sequans Communications, which closed Friday at $3.45.