* Sees margin concerns, higher competition for tech
* Has "sell" rating on 16 stocks, including Nokia, Cisco,
June 11 Berenberg Capital Markets downgraded
Ericsson, Qualcomm Inc and Imagination
Technologies Group Plc to "sell" from "hold," citing
margin concerns and rising competition.
Berenberg, which maintained its bearish view on the global
technology sector, said it is negative on 16 of the 22 stocks in
its coverage universe, including Nokia, Cisco Systems
Inc and Research in Motion Ltd .
While Ericsson will see pressure on its revenue and margin,
Qualcomm's market is getting crowded with the arrival of Intel
Inc and Huawei Technologies, Berenberg said.
Apple Inc and Samsung Electronics Co Ltd
dominate the wireless semiconductor market.
Imagination Technologies lacks the pricing power relative to
Apple, which accounts for about 50 percent of the company's
royalty volumes, the brokerage said. Samsung accounts for
another 20 percent.
Berenberg, which cut its price target on several stocks,
said Arm Holdings Plc, Apple and Samsung are its only
Earlier this month, J.P. Morgan Securities cuts its 2012
outlook for IT spending growth citing a slowdown in global
production trends and spending by China.
The Thomson Reuters Global Technology Index
is down 7.3 percent since the start of May.