Spreadtrum (SPRD) on Track to Achieve Second Half Smartphone Targets

According to checks by analysts at Canaccord Genuity, Spreadtrum’s (NASDAQ: SPRD) smartphone solutions experienced strong sales trends, including the TD-SCDMA SC8810, with increasing smartphone momentum at China Mobile and stronger than anticipated sales of EDGE smartphone solutions, the SC6810 and SC6820, into both China and international markets.

“While softer TD-SCDMA feature phone trends and the unwinding of Spreadtrum’s deferred cost program could limit upside to our estimates, we believe a larger mix of smartphone solutions in H2/12 and 2013 should yield resilient 2G and 3G ASPs, stabilized gross margins, and solid YOY earnings growth in 2013 with the deferred costs program completed at the end of 2012,” said analyst T. Michael Walkley.

“With our checks indicating an accelerating transition from 2G feature phones to EDGE and 3G sartphones in China and emerging markets, we believe Spreadtrum is on track to meet or potentially exceed management’s guidance for 10M smartphone units in Q3/12 and 15M in Q4/12,” added Walker.

Canaccord Genuity has a Buy Spreadtrum Communications and a price target of $22.00.

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 $20.96 yesterday.

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