Deutsche Bank Starts KLA-Tencor (KLAC) at Hold; Early Cycle Gains Priced In
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Price: $203.72 -2.7%
Rating Summary:
21 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank initiates coverage on KLA-Tencor (NASDAQ: KLAC) with a Hold. PT $38.00.
Deutsche analyst says, "While we remain impressed by KLAC's superior operational performance and overall management execution in terms of share gains, we believe most of these positives are priced into shares. Moreover, we expect tougher comps for KLAC (as foundries experience better yields at 28nm and Intel spend on process control is lower in 2012 vs. 2011) to limit share price outperformance. We see downside risk to Dec Q shipments outlook of down 6% to up 2%. Net cash position of $8/share, relatively healthy backlog levels (~$1.1B as of Sep Q), attractive dividend yield and active share buy-back program are all positives for the shares. But with 68% of sell-side ratings as Buys and with the yield story well understood, we believe risk-reward is balanced, especially considering the downside risk to consensus estimates."
For an analyst ratings summary and ratings history on KLA-Tencor click here. For more ratings news on KLA-Tencor click here.
Shares of KLA-Tencor closed at $42.08 yesterday.
Deutsche analyst says, "While we remain impressed by KLAC's superior operational performance and overall management execution in terms of share gains, we believe most of these positives are priced into shares. Moreover, we expect tougher comps for KLAC (as foundries experience better yields at 28nm and Intel spend on process control is lower in 2012 vs. 2011) to limit share price outperformance. We see downside risk to Dec Q shipments outlook of down 6% to up 2%. Net cash position of $8/share, relatively healthy backlog levels (~$1.1B as of Sep Q), attractive dividend yield and active share buy-back program are all positives for the shares. But with 68% of sell-side ratings as Buys and with the yield story well understood, we believe risk-reward is balanced, especially considering the downside risk to consensus estimates."
For an analyst ratings summary and ratings history on KLA-Tencor click here. For more ratings news on KLA-Tencor click here.
Shares of KLA-Tencor closed at $42.08 yesterday.
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