Investment analysts at JPMorgan Chase cut their target price on shares of Spreadtrum Comms (NASDAQ: SPRD) to $20.00 in a note issued to investors on Wednesday.
The analysts wrote, “Spreadtrum is facing a product transition period, which will be vital in determining its future market share, ASP and maJP Morganrgins. According to Huaqiang Research, single-core/dual-core/quad-core chipsets will represent around 25%/50%/25% of ‘made-in-China’ smartphone shipments in 2013, vs 80%/15%/5% in 2012. The company plans to introduce dual-core solutions in late 1Q/early 2Q and quad-core solutions in late 2Q/early 3Q. T-smart D98X using Spreadtrum’s dual-core TD-SCDMA chipset SC8825 will likely be launched in early March, based on our checks with T-smart. … We cut Dec-13 PT from HK$23 to HK20, based on 9x 2013E P/E, given shortening product cycle.”
Shares of Spreadtrum Comms traded up 4.52% during mid-day trading on Wednesday, hitting $16.42. Spreadtrum Comms has a 52 week low of $12.63 and a 52 week high of $23.20. The stock’s 50-day moving average is currently $16.29. The company has a market cap of $769.7 million and a P/E ratio of 7.90.
Spreadtrum Comms last announced its earnings results on Tuesday, February 26th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.09. The company had revenue of $203.10 million for the quarter, compared to the consensus estimate of $196.33 million. During the same quarter in the previous year, the company posted $0.78 earnings per share. The company’s revenue for the quarter was up 5.7% on a year-over-year basis. On average, analysts predict that Spreadtrum Comms will post $2.20 earnings per share for the current fiscal year.
A number of other firms have also recently commented on SPRD. Analysts at Nomura cut their price target on shares of Spreadtrum Comms from $21.70 to $18.00 in a research note to investors on Wednesday. They now have a “neutral” rating on the stock. Separately, analysts at Bank of America reiterated a “neutral” rating on shares of Spreadtrum Comms in a research note to investors on Wednesday. They now have a $18.18 price target on the stock, up previously from $17.83. Finally, analysts at Chardan Capital downgraded shares of Spreadtrum Comms from a “buy” rating to a “neutral” rating in a research note to investors on Friday, January 18th.
Spreadtrum Communications, Inc. is a fabless semiconductor company that designs, develops and markets markets mobile chipset platforms for smartphones, feature phones and other consumer electronics products that support second generation (2G), third generation (3G) and fourth generation (4G) wireless communications standards.
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