- Member Benefits
- Manage your personalised Watchlist.
- Set up an online Virtual Portfolio.
- Participate in Share Chat.
- See more trades and director dealings.
- Play the Fantasy Share Trading Game.
Share:
HomeShare PricesShare ChatFinance News
Sharecast NewsRegulatory NewsBlogsLive PricesShares BookshopFinance ToolsMembers
Sharecast NewsRegulatory NewsBlogsLive PricesShares BookshopFinance ToolsMembers
Latest Share Chat
ShareCast News
Broker snap: CSR's handset disposal is 'sensible', says Peel Hunt
Tue, 17th Jul 2012 10:31
Peel Hunt has retained its 'hold' recommendation and 230p target price for wireless technology and computer chip group CSR after the company's disposal of its handset business to Samsung.
CSR powered to a 52-week high after saying that it plans to return up to $285m to shareholders after sealing a deal with Samsung which will see the transfer to the Korean firm of CSR's phone handset operations for a consideration of $310m in cash.
Peel Hunt says that it expects to lower its revenue estimate for 2014 as the $280m of annual handset sales starts to reduce in that year.
"The company's cost base will reduce by around $10m in 2013 compared to our forecasts, taking guidance at the mid-point. From 2014 onwards, handset revenues will clearly need to be replaced by sales from other divisions," said analyst Alex Jarvis.
The broker said that the move is "sensible" due to CSR's inability to compete long term in this market. The disposal also completes the process of refocusing on platforms in non-handset markets.
Tuesday's news saw shares soar in morning trade; the stock was up 36.92% at 298.90p by 10:30.
BC
CSR powered to a 52-week high after saying that it plans to return up to $285m to shareholders after sealing a deal with Samsung which will see the transfer to the Korean firm of CSR's phone handset operations for a consideration of $310m in cash.
Peel Hunt says that it expects to lower its revenue estimate for 2014 as the $280m of annual handset sales starts to reduce in that year.
"The company's cost base will reduce by around $10m in 2013 compared to our forecasts, taking guidance at the mid-point. From 2014 onwards, handset revenues will clearly need to be replaced by sales from other divisions," said analyst Alex Jarvis.
The broker said that the move is "sensible" due to CSR's inability to compete long term in this market. The disposal also completes the process of refocusing on platforms in non-handset markets.
Tuesday's news saw shares soar in morning trade; the stock was up 36.92% at 298.90p by 10:30.
BC
