UPDATE: Morgan Stanley Raises PT on RDA Microelectronics on 2G Feature Phone Upside

In a report published Wednesday, Morgan Stanley maintained RDA Microelectronics

at Equal-Weight and raised its price target from $10.00 to $11.00 on 2G feature phone upside. Morgan Stanley reported that, “While we were too conservative on RDA's feature phone shipments, we still see 2013 as a transition year. We are forecasting modest growth for RDA in 2013 relative to its peers, but faster growth in 2014. In the EM markets where RDA is a player, we expect the total feature phone market to contract by around 10% Y/Y in 2013, but the smartphone market could more than double Y/Y. While RDA is winning in feature phones, we see its smartphone-related products ramping in 2014, leading to faster growth. These include the smartphone/tablet application processors/basebands, the power amplifiers, and connectivity solutions.” RDA Microelectronics closed at $11.09 on Tuesday.