Needham & Company Maintains a 'Strong Buy' on Spreadtrum Communications (SPRD); Delivers Another Beat and Raise Quarter Driven By Continued 2.5G Share Gains

Needham & Company maintains a 'Strong Buy' on Spreadtrum Communications (NASDAQ: SPRD) price target raised $2 to $32.

Needham analyst says, "Spreadtrum Communications delivered another beat and raise quarter driven by balanced growth across its 2.5G/3G product portfolio. The company continues to gain share in the emerging markets given its leadership position in multi-SIM 2.5G solutions. Spreadtrum is also benefiting from a strong ramp in the TD-SCDMA handset market, where the company has established a 50%+ share position in 2H11 with its low-cost, low-power 40nm solutions. Looking into next year, we believe the company will continue to grow revenue faster than peers driven by new product introductions, including 40nm TD-SCDMA and EDGE/WiFi smartphone solutions and a new line-up of 40nm single-chip 2.5G solutions, and continued TD-SCDMA unit market growth."

Needham raises FY11 EPS estimate from $2.37 to $2.51 and FY12 from $2.44 to $2.66.

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 $26.57 yesterday.

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