Auriga Reiterates a 'Buy' on Spreadtrum Communications (SPRD); 2Q11 Now Seems To Be Okay
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Price: $22.98 --0%
Rating Summary:
12 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 1
Rating Summary:
12 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 1
Trade SPRD Now!
Auriga reiterates a 'Buy' on Spreadtrum Communications (NASDAQ: SPRD), PT $29.
Auriga analyst says, "We reiterate our rating and price target on Spreadtrum after recent checks that confirmed many of our thoughts in our Auriga Insight note published on 3/16/2011. We initially thought 2Q11 could be a test for SPRD due to MediaTek's introduction of its second generation SoC product, the 6252, but we now see the risk being meaningfully mitigated as the handoff between MediaTek's 6253 and 6252 will likely be a gradual process over the next five to six months, thus giving SPRD ample time to adjust and introduce its own new products. Our checks suggest that SPRD's monthly shipments continue to be strong and the 2Q11 revenue can possibly be better than the current consensus estimate of $137mln. In our opinion, SPRD remains a market share gain story, with shipment strengths more than offsetting the gross margin pressure, and we see reward outweighing risk at the current level."
For more ratings news on Spreadtrum Communications click here and for the rating history of Spreadtrum Communications click here.
Shares of Spreadtrum Communications closed at $18.23 yesterday, with a 52 week range of $5.54-$24.20.
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Auriga analyst says, "We reiterate our rating and price target on Spreadtrum after recent checks that confirmed many of our thoughts in our Auriga Insight note published on 3/16/2011. We initially thought 2Q11 could be a test for SPRD due to MediaTek's introduction of its second generation SoC product, the 6252, but we now see the risk being meaningfully mitigated as the handoff between MediaTek's 6253 and 6252 will likely be a gradual process over the next five to six months, thus giving SPRD ample time to adjust and introduce its own new products. Our checks suggest that SPRD's monthly shipments continue to be strong and the 2Q11 revenue can possibly be better than the current consensus estimate of $137mln. In our opinion, SPRD remains a market share gain story, with shipment strengths more than offsetting the gross margin pressure, and we see reward outweighing risk at the current level."
For more ratings news on Spreadtrum Communications click here and for the rating history of Spreadtrum Communications click here.
Shares of Spreadtrum Communications closed at $18.23 yesterday, with a 52 week range of $5.54-$24.20.
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