Needham Growth Conference Recap - Semiconductor Capital Equipment Update: Positive Commentaries Confirmed
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Price: $140.48 +0.34%
Rating Summary:
13 Buy, 12 Hold, 0 Sell
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
13 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Needham Growth Conference Recap: Semiconductor Capital Equipment Update Volume 25: 2012
Positive Commentaries Confirmed Our Near-term View; Upgrading MTSN to Buy
Analyst, Y. Edwin Mok, said, "Following our meetings at the 14th Needham Growth Conference, we came away incrementally more confident on our near-term call on the semiconductor equipment sector. Positive commentaries by most semi equipment companies at the conference, coupled by increased bookings guidance from TE Connectivity (NYSE: TEL) (N/R) and raised revenue guidance by sub-system supplier Ultra Clean (Nasdaq: UCTT) (Buy), give us more confidence on our call for substantial upside to Street’s estimates in the near-term. We continue to expect companies to guide for 1Q12 revenue growth of 10-20% sequentially, substantially above Street’s projected 2.3% decline. Additionally, we believe bookings will also be up over 10% sequentially, staging for revenue growth in the subsequent quarter. However, as we stated in our 2012 outlook piece on January 5th, we are concerned that the strong mid-cycle rebound in 1H12 will be followed by a pause or even a pullback in 2H12, pressuring stocks from 2Q12 to late 2012, when visibility for a stronger 2013 emerges."
"While renewed optimism has moved stocks higher this past week, we recommend investors buy into the 4Q11 earnings season, which will be kicked off by ASML, Inc (Nasdaq: ASML) (N/R) on Wednesday, January 18th. Among names under coverage, we are upgrading Mattson (Nasdaq: MTSN) from Hold to Buy. We believe MTSN’s new RTP and etch products will drive outperformance, relative to industry growth, in 2012/13. Additionally, financials should improve meaningfully, and the stock looks cheap. We continue to recommend Lam Research (Nasdaq: LRCX) (and merger partner Novellus (Nasdaq: NVLS)), based on our belief that LRCX will outperform the industry in 2012 and our positive view of the merger. Finally, among small-caps, we continue to like Brooks (Nasdaq: BRKS) (Buy), FSI International (Nasdaq: FSII) (Buy) and Nova Measuring Instruments (Nasdaq: NVMI) (Strong Buy)."
Positive Commentaries Confirmed Our Near-term View; Upgrading MTSN to Buy
Analyst, Y. Edwin Mok, said, "Following our meetings at the 14th Needham Growth Conference, we came away incrementally more confident on our near-term call on the semiconductor equipment sector. Positive commentaries by most semi equipment companies at the conference, coupled by increased bookings guidance from TE Connectivity (NYSE: TEL) (N/R) and raised revenue guidance by sub-system supplier Ultra Clean (Nasdaq: UCTT) (Buy), give us more confidence on our call for substantial upside to Street’s estimates in the near-term. We continue to expect companies to guide for 1Q12 revenue growth of 10-20% sequentially, substantially above Street’s projected 2.3% decline. Additionally, we believe bookings will also be up over 10% sequentially, staging for revenue growth in the subsequent quarter. However, as we stated in our 2012 outlook piece on January 5th, we are concerned that the strong mid-cycle rebound in 1H12 will be followed by a pause or even a pullback in 2H12, pressuring stocks from 2Q12 to late 2012, when visibility for a stronger 2013 emerges."
"While renewed optimism has moved stocks higher this past week, we recommend investors buy into the 4Q11 earnings season, which will be kicked off by ASML, Inc (Nasdaq: ASML) (N/R) on Wednesday, January 18th. Among names under coverage, we are upgrading Mattson (Nasdaq: MTSN) from Hold to Buy. We believe MTSN’s new RTP and etch products will drive outperformance, relative to industry growth, in 2012/13. Additionally, financials should improve meaningfully, and the stock looks cheap. We continue to recommend Lam Research (Nasdaq: LRCX) (and merger partner Novellus (Nasdaq: NVLS)), based on our belief that LRCX will outperform the industry in 2012 and our positive view of the merger. Finally, among small-caps, we continue to like Brooks (Nasdaq: BRKS) (Buy), FSI International (Nasdaq: FSII) (Buy) and Nova Measuring Instruments (Nasdaq: NVMI) (Strong Buy)."
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