Jefferies Downgrades Spreadtrum Communications (SPRD) to Underperform, Citing TD Competition and Weakening 2G Demand

Jefferies downgraded Spreadtrum Communications (NASDAQ: SPRD) to Underperform with a price target of $11.70.

The firm comments, "We downgrade SPRD to Underperform, and reduce our PT by 68% to HK$11.70, implying 22% downside from current level. We lower our non-GAAP net income est. by 22%/27% for 2012/13 to reflect increasing TD competition and weakening 2G demand. Our industry checks indicate a more realistic TD TAM is 60mn in 2012 vs. our prior/consensus expectation of 80mn/90mn. Increasing competition leads us to turn cautious on its TD market share and ASPs."

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 $16.03 yesterday.

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