SiRF Technology Holdings "neutral," target price reduced - update

03/26/08 - UBS

NEW YORK, March 26 (newratings.com) - Analysts at UBS maintain their "neutral" rating on SiRF Technology Holdings Inc (SIRF), while reducing their estimates for the company. The 12-month target price has been reduced from $9.00 to $5.50.

In a research note published this morning, the analysts mention that the company’s 1Q results are likely to have been negatively impacted by stiff competition from Mediatek. SiRF Technology Holdings is facing increased risk from the slowdown in consumer discretionary spending, particularly since the company’s revenues emanate from high-end handsets and personal navigation devices (PNDs). The EPS estimates for 2008 and 2009 have been reduced from -$0.36 to -$0.64 and from $0.18 to -$0.14, respectively.