MediaTek downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Bruce Lu downgraded MediaTek (MDTKF) to Sell from Neutral with a price target of NT$620, down from NT$730. The firm sees a deteriorating earnings outlook for MediaTek, given weaker-than-expected smartphone demand recovery, especially for high-end 5G Android models; intensifying pricing competition for 4G and mid- to low-end 5G models under sluggish market demand, which should weigh on its margins; and declining market share at Samsung (SSNLF) due to rising competition from its Chinese peer and Samsung’s increased in-house production.