Nomura Securities on U.S. Semiconductors: Cautious on Xilinx (XLNX) & Intel (INTC); Favor Apple's (AAPL) Supply Chain
Tweet Send to a FriendGet Alerts XLNX Hot Sheet
Price: $39.18 -0.08%
Rating Summary:
8 Buy, 17 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 13
Rating Summary:
8 Buy, 17 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 13
Trade XLNX Now!
Nomura Securities on U.S. Semiconductors: Cautious on Xilinx (Nasdaq: XLNX)
Analyst, Romit Shah, said, "We cannot make a fundamental argument for being long any semiconductor stocks in today’s environment where global GDP growth is decelerating. Overall, we expect Q3 revenue guidance to be 3-7 points below normal seasonality. We are cautious on Intel shares (Reduce/$25 TP) into earnings next week. We believe MPU ASPs, which have been a major revenue driver over the past two years, are starting to roll over. We expect sub-seasonal revenue growth from Intel in Q3, and are lowering our revenue estimate to up 5% in Q3. We are also cautious on shares of Xilinx (Neutral/$30 TP), which we think will be one of the few companies that guide Q3 down sequentially. It is trading at a larger than normal premium on EV/sales (+23 vs. avg of +11%). Our estimates decrease from $596mn/$0.48 to $565mn/$0.43 in Q3 and from $2.68bn/$2.40 to $2.44/$2.00 in 2013. Our new target price of $30 is based on a multiple of 15x CY13."
"On a relative basis, we believe the GDP plays (Analog Devices (NYSE: ADI), Altera (Nasdaq: ALTR), Intel (Nasdaq: INTC), Linear (Nasdaq: LLTC), Maxim (Nasdaq: MXIM), TI (NYSE: TXN), XLNX) have more downside than the Apple supply chain (Avago (Nasdaq: AVGO, Broadcom (Nasdaq: BRCM), QUALCOMM (Nasdaq: QCOM)) and secular losers (AMD (NYSE: AMD), Atmel (Nasdaq: ATML), Marvell (Nasdaq: MRVL), NVIDIA (Nasdaq: NVDA)), which are down 26% on average over the past three months."
"We are cautious on Intel shares (Reduce/$25 PT) into earnings next week."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Romit Shah, said, "We cannot make a fundamental argument for being long any semiconductor stocks in today’s environment where global GDP growth is decelerating. Overall, we expect Q3 revenue guidance to be 3-7 points below normal seasonality. We are cautious on Intel shares (Reduce/$25 TP) into earnings next week. We believe MPU ASPs, which have been a major revenue driver over the past two years, are starting to roll over. We expect sub-seasonal revenue growth from Intel in Q3, and are lowering our revenue estimate to up 5% in Q3. We are also cautious on shares of Xilinx (Neutral/$30 TP), which we think will be one of the few companies that guide Q3 down sequentially. It is trading at a larger than normal premium on EV/sales (+23 vs. avg of +11%). Our estimates decrease from $596mn/$0.48 to $565mn/$0.43 in Q3 and from $2.68bn/$2.40 to $2.44/$2.00 in 2013. Our new target price of $30 is based on a multiple of 15x CY13."
"On a relative basis, we believe the GDP plays (Analog Devices (NYSE: ADI), Altera (Nasdaq: ALTR), Intel (Nasdaq: INTC), Linear (Nasdaq: LLTC), Maxim (Nasdaq: MXIM), TI (NYSE: TXN), XLNX) have more downside than the Apple supply chain (Avago (Nasdaq: AVGO, Broadcom (Nasdaq: BRCM), QUALCOMM (Nasdaq: QCOM)) and secular losers (AMD (NYSE: AMD), Atmel (Nasdaq: ATML), Marvell (Nasdaq: MRVL), NVIDIA (Nasdaq: NVDA)), which are down 26% on average over the past three months."
"We are cautious on Intel shares (Reduce/$25 PT) into earnings next week."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Needham & Company Lifts Numbers on Marvell (MRVL) on Solid Results
- Dollar Tree (DLTR) Beats But Looks Stretched - Jefferies
- Janney Capital Trims Numbers on Buckle (BKE), Margins Peaking
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Nomura, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
