UPDATE: Jefferies Upgrades Spreadtrum Communications to Buy on Strong TD Net Adds

Jefferies upgraded Spreadtrum Communications SPRD from Hold to Buy and raised the price target from $20.00 to $24.00. Jefferies analyst Ken Hui commented, "China Mobile's strong TD net adds are making the TD smartphone market larger. In the near term, Spreadtrum also sees stronger demand for TD smartphone chips and stabilizing prices given supply constraints. Upgrade to Buy with a new PT of $24, implying 31% upside. […] After raising our estimates for China Mobile's TD net adds in 2013 from 49.0mn to 74.4mn, we revise up our forecast on TD handset shipments in 2013 from 90mn to 139mn units, representing 88% growth. This will clearly be a strong tailwind for Spreadtrum." Spreadtrum Communications closed at $18.27 on Tuesday.