Jefferies Raises Price Target on Spreadtrum Communications (SPRD) Following Solid Results & Outlook
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Price: $30.93 --0%
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Jefferies is reiterating its Buy rating on shares of Spreadtrum Communications (NASDAQ: SPRD) while raising its price target from $31.35 to $36.
The company reported strong third quarter results with both sales and earnings topping expectations. Management also released its fourth quarter guidance ahead of expectations with a revenue range of $188-$194 million.
Management forecasts the 2G market size will be 900 million units in 2012, up 100 million units year over year. The company also sees substantial runway for the 2G market in emerging markets.
An analyst at Jefferies comments, "The new smartphone battleground is in the sub- $150 tier. Following the launch of TD and EDGE smartphone solutions in Q4, we believe Spreadtrum is poised to drive incremental revenues from ramping up of shipments into Q1 and beyond as these offerings are geared toward to emerging markets where smartphone penetration is lower. Moreover, we expect an improving mix of higher margin TD sales to partially offset the intensifying pricing competition in 2G."
Jefferies is raising its FY11, FY12, and FY13 EPS estimates from $2.69, $2.85, and $2.96 to $2.79, $3.00, and $3.15. Sales for the three years is forecasted to be $675 million, $828 million, and $930 million.
For an analyst ratings summary and ratings history on Spreadtrum Communications click here. For more ratings news on Spreadtrum Communications click here.
Shares of Spreadtrum Communications closed at $26.76 yesterday.
The company reported strong third quarter results with both sales and earnings topping expectations. Management also released its fourth quarter guidance ahead of expectations with a revenue range of $188-$194 million.
Management forecasts the 2G market size will be 900 million units in 2012, up 100 million units year over year. The company also sees substantial runway for the 2G market in emerging markets.
An analyst at Jefferies comments, "The new smartphone battleground is in the sub- $150 tier. Following the launch of TD and EDGE smartphone solutions in Q4, we believe Spreadtrum is poised to drive incremental revenues from ramping up of shipments into Q1 and beyond as these offerings are geared toward to emerging markets where smartphone penetration is lower. Moreover, we expect an improving mix of higher margin TD sales to partially offset the intensifying pricing competition in 2G."
Jefferies is raising its FY11, FY12, and FY13 EPS estimates from $2.69, $2.85, and $2.96 to $2.79, $3.00, and $3.15. Sales for the three years is forecasted to be $675 million, $828 million, and $930 million.
For an analyst ratings summary and ratings history on Spreadtrum Communications click here. For more ratings news on Spreadtrum Communications click here.
Shares of Spreadtrum Communications closed at $26.76 yesterday.
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