Barclays on Semiconductors And Equipment: Weekly Muse-ings: Previewing ALTR, CYMI, INTC, FSL, LLTC, LRCX, MKSI, XLNX
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Price: $111.85 --0%
Rating Summary:
4 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
4 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Barclays on Semiconductors And Equipment: Weekly Muse-ings: Previewing ALTR, CYMI, INTC, FSL, LLTC, LRCX, MKSI, XLNX
Barclays analyst, C.J. Muse, said, "First Part of Semi Trade "Stabilization" Showing Legs: We continue to see two stages within the current semi recovery. First is stabilization, where double-dip is no longer a concern and investors who have been underweight the group add more aggressively into year end - we believe we are here now, as indicated, in particular, by the recent aggressive buying of revenue cuts pointing to 4Q/1Q trough. The second is the rate of recovery, and here our expectations are a bit more subdued where we only expect a gradual WW economic recovery leading to semi growth of +2-5% in 2012. So we continue to like semis here, expect the SOX to head higher on "stabilization" thesis, but do see realization of only a slow recovery as capping the SOX at ~$400 level."
"What's on Tap This Week - Earnings Reports from Alterra (Nasdaq: ALTR), Intel (Nasdaq: INTC), FreeScale (NYSE: FSL), Linear Tech (Nasdaq: LLTC), and Xilinx (Nasdaq: XLNX) in Semis and Cymer (Nasdaq: CYMI), Lam Research (Nasdaq: LRCX), and MKS Instruments (Nasdaq: MKSI) in Semi Equipment: In Semis, we continue to focus your attention on INTC (one of few semi names able to guide flat to up) as well as FSL (look for earnings trough; catch up trade). We do anticipate weakness from LLTC, XLNX, and ALTR, but this appears well discounted by the street. Thus, our price targets are lowered to $33 and $42 from $36 and $46 for XLNX and ALTR, respectively. In SPE, we like LRCX on likely guide of shipments of flat to slightly up in 4Q, echoing ASML's call for trough. We raise our price target to $49 from $46. We continue to see a reset for CYMI that will make shares look expensive and for MKSI to grind higher in-step with our front-end cyclical view."
"Our Top Picks Remain QCOM, BRCM, ALTR, and INTC in Semis, LRCX and ASML Inc (Nasdaq: ASML) in SPE: Our top picks remain QCOM (migration to higher silicon content smartphones, 3G/EMG wireless build-out), BRCM (connectivity/leverage to Apple (Nasdaq: AAPL)), ALTR (40nm ramp/share gains - though do see risk here into earnings on ongoing networking weakness), and INTC (server cycle, stabilizing PC, ~4% dividend yield). In SPE, we continue to like shares at current valuations with our top picks being LRCX (no Intel exposure; buybacks; 28nm foundry/NAND exposure), and ASML (orders reset; consensus revenues largely reset)."
Barclays analyst, C.J. Muse, said, "First Part of Semi Trade "Stabilization" Showing Legs: We continue to see two stages within the current semi recovery. First is stabilization, where double-dip is no longer a concern and investors who have been underweight the group add more aggressively into year end - we believe we are here now, as indicated, in particular, by the recent aggressive buying of revenue cuts pointing to 4Q/1Q trough. The second is the rate of recovery, and here our expectations are a bit more subdued where we only expect a gradual WW economic recovery leading to semi growth of +2-5% in 2012. So we continue to like semis here, expect the SOX to head higher on "stabilization" thesis, but do see realization of only a slow recovery as capping the SOX at ~$400 level."
"What's on Tap This Week - Earnings Reports from Alterra (Nasdaq: ALTR), Intel (Nasdaq: INTC), FreeScale (NYSE: FSL), Linear Tech (Nasdaq: LLTC), and Xilinx (Nasdaq: XLNX) in Semis and Cymer (Nasdaq: CYMI), Lam Research (Nasdaq: LRCX), and MKS Instruments (Nasdaq: MKSI) in Semi Equipment: In Semis, we continue to focus your attention on INTC (one of few semi names able to guide flat to up) as well as FSL (look for earnings trough; catch up trade). We do anticipate weakness from LLTC, XLNX, and ALTR, but this appears well discounted by the street. Thus, our price targets are lowered to $33 and $42 from $36 and $46 for XLNX and ALTR, respectively. In SPE, we like LRCX on likely guide of shipments of flat to slightly up in 4Q, echoing ASML's call for trough. We raise our price target to $49 from $46. We continue to see a reset for CYMI that will make shares look expensive and for MKSI to grind higher in-step with our front-end cyclical view."
"Our Top Picks Remain QCOM, BRCM, ALTR, and INTC in Semis, LRCX and ASML Inc (Nasdaq: ASML) in SPE: Our top picks remain QCOM (migration to higher silicon content smartphones, 3G/EMG wireless build-out), BRCM (connectivity/leverage to Apple (Nasdaq: AAPL)), ALTR (40nm ramp/share gains - though do see risk here into earnings on ongoing networking weakness), and INTC (server cycle, stabilizing PC, ~4% dividend yield). In SPE, we continue to like shares at current valuations with our top picks being LRCX (no Intel exposure; buybacks; 28nm foundry/NAND exposure), and ASML (orders reset; consensus revenues largely reset)."
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