Spreadtrum Comms Stock Rating Upgraded by Bank of America (SPRD)
The analysts wrote, “We forecast 2013/14 EPS of US$2.64/3.17, respectively, for Spreadtrum, i.e., 21/27% above the street. We upgrade our rating from Neutral to Buy and price objective from US$18.18 to US$30, based on 11.4x 2013E P/E (up from 8.8x on 47% EPS growth and much-improved sales visibility). We have raised our 2013/14 TD-SCDMA smartphone chipset forecast from 55mn/68mn to 100mn/130mn, respectively, driven by China Mobile’s huge subsidy/commission programs. Our analysis suggests 1Q13 is on track (flat) while 2Q/3Q should surge 23/22%, QoQ. CM’s TD-smartphone market target is about 100mn but we see upside potential and believe chip shipments should reach 150-160mn due to supply chain restocking.”
A number of other firms have also recently commented on SPRD. Analysts at Northland Securities initiated coverage on shares of Spreadtrum Comms in a research note to investors on Thursday. They set an “outperform” rating on the stock. Separately, analysts at Northland Capital initiated coverage on shares of Spreadtrum Comms in a research note to investors on Thursday. They set an “outperform” rating and a $25.00 price target on the stock. Finally, analysts at Jefferies Group upgraded shares of Spreadtrum Comms from a “hold” rating to a “buy” rating in a research note to investors on Wednesday. They now have a $24.00 price target on the stock, up previously from $20.00.
One research analyst has rated the stock with a sell rating, two have given a hold rating and nine have assigned a buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $22.66.
Shares of Spreadtrum Comms (NASDAQ: SPRD) traded up 0.98% during mid-day trading on Friday, hitting $19.49. Spreadtrum Comms has a one year low of $12.63 and a one year high of $23.20. The stock’s 50-day moving average is currently $16.82. The company has a market cap of $927.2 million and a P/E ratio of 10.72.
Spreadtrum Comms (NASDAQ: SPRD) last issued its quarterly earnings data on Tuesday, February 26th. The company reported $0.59 EPS for the quarter, beating the Thomson Reuters 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 prior year, the company posted $0.78 earnings per share. The company’s quarterly revenue was up 5.7% on a year-over-year basis. On average, analysts predict that Spreadtrum Comms will post $2.25 earnings per share for the current fiscal year.
The company also recently announced a special dividend, which is scheduled for Thursday, April 25th. Investors of record on Wednesday, April 10th will be paid a dividend of $0.10 per share. The ex-dividend date is Monday, April 8th.
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 (NASDAQ: SPRD), third generation (3G) and fourth generation (4G) wireless communications standards.
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