AmTech Says Recent EPS Revisions in Semi Names Show Exposure to Further Cuts (ISIL, CY, TXN, more..)

American Technology Research is out with a note reviewing the potential for further estimate cuts at certain semiconductor companies. In order to fully reflect a possible macroeconomic downturn scenario, AmTech believes both consensus estimate cuts and multiple compression could impact several names in the industry.

• Intersil (Nasdaq: ISIL) - reiterates Buy, citing a "low risk to further estimate cuts as estimates cuts have been made and should capture the current outlook." With shares of Intersil currently trading around a forward P/E of 11.6x, AmTech says the stock has the best chance among the group to move higher over the next few months.
  
• Analog Devices (NYSE: ADI) - AmTech believes its Neutral stance on the stock could be shifting to a positive stance as analysts have already lowered estimates since the company's last earnings report.
  
• Cypress Semiconductor (NYSE: CY) - reiterates Neutral, citing "some risk to estimate cuts" as EPS have yet to see substantial reductions. At the same time, AmTech says Cypress' post-spin enterprise value could be attractive.
  
• Semtech (Nasdaq: SMTC) - reiterates Neutral as it believes EPS revisions have not yet been sufficient.
  
• Texas Instruments (NYSE: TXN) - reiterates Neutral. The firm believes Texas Instruments has seen one of the largest multiple compressions among the group, but points out that the company is "facing share risk as well as market risk in wireless."

Using StreetInsider.com, investors can see a history of analyst ratings and estimate changes, which would be useful for such analysis as AmTech performed in its semiconductor report today. At any stock lookup page (which can be reached by typing in a ticker in the "Get Quote" box at the top of the homepage), scroll down to the section labeled "StreetInsider Reports on [ticker] by Category" and click on the first link, "Analyst Ratings". This page is a record of all the news items StreetInsider has tagged as either an Upgrade, Downgrade or Analyst Comment.

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