Canaccord Genuity Reiterates a 'Buy' on Spreadtrum Communications (SPRD); Smartphone Ramp Tops Deferred Cost Program

Canaccord Genuity reiterates a 'Buy' on Spreadtrum Communications (NASDAQ: SPRD) price target raised to $22.00.

Analyst, T. Michael Walkley, said, "Spreadtrum VP of Business Development Diana Jovin presented today at the Canaccord Genuity Global Growth Conference. While we believe a larger mix of smartphone solutions in H2/12 and 2013 should drive higher blended chipset ASPs, stabilized gross margin, and solid growth in 2013, we believe softer feature phone trends and the phase-out of Spreadtrum’s deferred cost program limit H2/12 sales."

"Due to our updated estimates for the deferred inventory program combined with our increased longer-term ASP estimates, we lower our 2012 pro forma EPS estimate from $2.28 to $2.24, but increase our 2013 pro-forma EPS estimate from $2.39 to $2.41."

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 $17.28 yesterday.

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