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CSR shares jump on analyst upgrade

LOS ANGELES (AP) -- Shares of British chip maker CSR PLC were trading higher Monday, buoyed by an analyst report saying the company should continue to capitalize on market opportunities.

THE SPARK: Jefferies analyst Lee Simpson upgraded CSR to "Buy" from "Hold," expressing optimism that the company has an opportunity to see demand grow for its chips used in audio devices in cars and other markets.

THE BACKGROUND: CSR, based in Cambridge, U.K., develops chips and software for consumer electronics devices used to connect data through location technologies like GPS, Bluetooth, Wi-Fi an others.

THE ANALYSIS: In a note published Monday, Simpson said CSR stands to benefit from opportunities in markets such as sound bars, autos and personal-area networking, as long as the company can continue to ride the interest in each new market wave and avoid pricing pressure.

The analyst is particularly optimistic about potential opportunities for CSR's audio platform business, including Wi-Fi products and "infotainment."

Simpson also sees voice and music as a growth driver for the company this year and in 2014.

The analyst is less enthusiastic about opportunities on Bluetooth Smart, noting it could be limited in the long term by offerings from competitors.

SHARE ACTION: U.S.-traded shares of CSR gained $1.60, or 4.9 percent, to $34.16 in afternoon trading. The stock has traded in a 52-week range of $12.91 to $34.55, and gained more than 50 percent in the first half of 2013.