SiRF Technology Holdings "sector perform," target price reduced

03/26/08 - RBC Capital Markets

NEW YORK, March 26 (newratings.com) - Analyst Mahesh Sanganeria of RBC Capital Markets maintains his "sector perform" rating on SiRF Technology Holdings Inc (SIRF), while reducing his estimates for the company. The target price has been reduced from $11 to $5.

In a research note published this morning, the analyst mentions that the company has reduced its revenue guidance for 1Q08 from $71-$77 million to $60-$62 million. Since it is shutting down its mobile TV initiatives, SiRF Technology Holdings has declared a 7% layoff. Intense competition is adversely impacting the company’s gross margins and revenue growth and SiRF Technology Holdings witnessing a challenging environment, the analyst says. The EPS estimate for 2008 has been reduced from $0.32 to $0.14.