Spansion downgraded to "hold"

04/17/08 - Deutsche Securities

NEW YORK, April 17 (newratings.com) - Analysts at Deutsche Bank Securities downgrade Spansion Inc (SPSN) from "buy" to "hold," while reducing their estimates for the company. The target price has been reduced from $7.00 to $3.50.

In a research note published this morning, the analysts mention that the company has reported its 1Q08 revenues short of the guidance and GAAP LPS higher than the estimates and the consensus. Spansion is unlikely to generate earnings in 2008 and 2009, the analysts say. Challenges in the NOR market are likely to rise going forward, and the company’s new products are unlikely to ramp at a pace needed to offset the potential decline in the NOR revenues, Deutsche Bank Securities adds. The GAAP EPS estimate for 2009 has been reduced from $0.37 to -$1.45.