) to underweight from neutral, and reiterated its underweight rating on R.F. Micro Devices (RFMD
) and Triquint Semiconductor (TQNT
Analyst Christopher Danely says Nokia negatively pre-announced, due to lower-than-expected handset sales. He says Nokia is the largest customer for Texas Instruments and R.F. Micro Devices, and represents about 40% to 45% of R.F. Micro's revenue, and 15% of Texas Instruments' revenue. Additionally, Nokia represents 8% to 10% of Triquint's revenue.
Danely says he downgraded TI due to the risk to his estimates, high valuation, high lead times coming in, and the chipmaker's high commodity exposure. He reiterated his underweight ratings on R.F. Micro and Triquint as Nokia's pre-announcement creates risk to his second-quarter estimates.