ANALYSTS at N+1 Singer have downgraded In a note
At the start of this month Wolfson said its final-quarter sales would not meet expectations and a major customer, thought to be Blackberry, had cancelled a roll-out of products. Other customer products were also delayed but the revenue from those was expected to roll over into the company's next financial year.
In the research note issued yesterday Ms Tapley said N+1 has cut its forecasts for Wolfson for 2013 as well as the next two financial years while the stock's price target is now 156p, down from 170p.
She said this has been done because of the low visibility Wolfson has for its forward sales and uncertainty surrounding some of its clients such as Blackberry.
There was also a note of caution over the reliance Wolfson has on its biggest customer which is widely understood to be Samsung.
Around 60% of revenue in the first half of the financial year came from Wolfson's biggest customer although this is expected to have reduced to 35% for the third quarter.
Ms Tapley added: "We believe that [Wolfson] will need to rebuild confidence in the conversion of design wins into profitable revenues before the shares can move up substantially."
Shares in Wolfson closed down 1.75p, or 1%, at 147.75p.
ANALYSTS at N+1 Singer have downgraded
In a note