MediaTek downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Gokul Hariharan downgraded MediaTek to Neutral from Overweight with a price target of NT$750, down from NT$800. The firm believes that Smartphone SoC market recovery seems weak, while price competition is intensifying into the second half of the year; new China smartphone dynamics like the return of Huawei and rising secondhand smartphone market don’t favor Mediatek; and anticipation of new growth drivers appear to be reaching excessive levels, while revenue contribution is likely to be small and/or distant.