Barclays on Technology/U.S. Semiconductors: SMID Themes for Growth and Top Picks
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Price: $8.14 --0%
Rating Summary:
9 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on Technology/U.S. Semiconductors: SMID Themes for Growth and Top Picks
Barclays analyst said, "We are updating our views on our 11 small/mid-cap (SMID) names under coverage and initiating coverage on five names: Atmel (Nasdaq: ATML), NetLogic Microsystems (Nasdaq: NETL), and Volterra Semiconductor (Nasdaq: VLTR) with a Overweight rating and LSI Corp. (NYSE: LSI) and Silicon Laboratories (Nasdaq: SLAB) with a Equal Weight rating. We are generally positive on our SMID coverage universe. We recognize business trends are on the margin weaker, which could linger through earnings, but our checks suggest inventories in the end markets were relatively healthy entering this slowdown and the group is cheap at only 12x 2012E EPS in this lower growth environment. We favor the secular names which we believe will continue to outpace the overall group in terms of fundamentals regardless of end market growth and should continue to be rewarded with premium multiples.
"Increasing RF content in handsets: Checks and bottoms up analysis suggest the RF semi market grows 15-20% over the next two to three years driven by the transition to 3G and 4G. There is a large disconnect with RF names trading at only ~11x CY12 EPS. Ways to invest: Avago (Nasdaq: AVGO), SkyWorks (Nasdaq: SWKS), and TriQuint (Nasdaq: TQNT)."
"Increasing adoption of capacitive touchscreens in handsets: Checks and proprietary customer build suggest capacitive touch market increases to over 460M (+90% Y/Y) in 2011 and 670M (+40% Y/Y) in 2012. More importantly, new competition remains at bay for next 6-12 months. Ways to invest: ATML and Cypress (NYSE: CY)."
Barclays analyst said, "We are updating our views on our 11 small/mid-cap (SMID) names under coverage and initiating coverage on five names: Atmel (Nasdaq: ATML), NetLogic Microsystems (Nasdaq: NETL), and Volterra Semiconductor (Nasdaq: VLTR) with a Overweight rating and LSI Corp. (NYSE: LSI) and Silicon Laboratories (Nasdaq: SLAB) with a Equal Weight rating. We are generally positive on our SMID coverage universe. We recognize business trends are on the margin weaker, which could linger through earnings, but our checks suggest inventories in the end markets were relatively healthy entering this slowdown and the group is cheap at only 12x 2012E EPS in this lower growth environment. We favor the secular names which we believe will continue to outpace the overall group in terms of fundamentals regardless of end market growth and should continue to be rewarded with premium multiples.
"Increasing RF content in handsets: Checks and bottoms up analysis suggest the RF semi market grows 15-20% over the next two to three years driven by the transition to 3G and 4G. There is a large disconnect with RF names trading at only ~11x CY12 EPS. Ways to invest: Avago (Nasdaq: AVGO), SkyWorks (Nasdaq: SWKS), and TriQuint (Nasdaq: TQNT)."
"Increasing adoption of capacitive touchscreens in handsets: Checks and proprietary customer build suggest capacitive touch market increases to over 460M (+90% Y/Y) in 2011 and 670M (+40% Y/Y) in 2012. More importantly, new competition remains at bay for next 6-12 months. Ways to invest: ATML and Cypress (NYSE: CY)."
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