UPDATE: Credit Suisse Downgrades Spreadtrum, Raises PT On Mixed Implications for Company and Sector

In a report published Monday, Credit Suisse analyst Randy Abrams downgraded Spreadtrum Communication SPRD from Outperform to Neutral and raised its price target from $27.00 to $28.50. In the report, Credit Suisse cited, “An acquisition by a government/university-backed investment group could enhance its ability to secure subsidies and favourable development of China standards, helping it secure share in China's 4G networks. The flip side is that a move into a larger holding company may throw up challenges for the company to keep the same sharp focus on execution, which is required in the competitive low-cost smartphone space. Potential gains in China may be offset by the lower competitiveness of its non-China customers and export markets.” Spreadtrum closed Friday at $25.91.
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Posted In: Analyst ColorDowngradesAnalyst RatingsCredit SuisseRandy Abrams
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