DA Davidson Upgrades Cabot Microelectronics (CCMP) to Buy; Channel Checks Indicate Improving Wafer Starts
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Price: $173.69 --0%
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson upgraded Cabot Microelectronics (NASDAQ: CCMP) from Neutral to Buy, price target lowered from $51 to $49.
Analyst, Avinash Kant, said, "Our channel checks indicate that Q1 wafer starts at the leading Taiwanese foundry TSMC (NYSE: TSM) accelerated, and are now expected to be up close to 8%-10% sequentially compared to the previous expectation of up 5%. Similarly, the second leading Taiwanese foundry UMC (NYSE: UMC) had guided for a marginal increase in wafer starts on its Q4:CY11 conference call, but now may see wafer starts up more than 5% in Q1. Positive trends are also extending into Q2, as wafer starts at the Taiwanese foundries are now expected to grow by close to 10% sequentially. TSMC and UMC combined are ~30% of CCMP’s business."
"Our FY12 and FY13 EPS estimates of $2.39 and $3.20 are already ahead of
consensus expectations of $2.22 and $3.15, respectively, and remain unchanged.
We are introducing CY13 estimates of $3.27 on $500 million."
For an analyst ratings summary and ratings history on Cabot Microelectronics click here. For more ratings news on Cabot Microelectronics click here.
Shares of Cabot Microelectronics closed at $34.77 yesterday.
Analyst, Avinash Kant, said, "Our channel checks indicate that Q1 wafer starts at the leading Taiwanese foundry TSMC (NYSE: TSM) accelerated, and are now expected to be up close to 8%-10% sequentially compared to the previous expectation of up 5%. Similarly, the second leading Taiwanese foundry UMC (NYSE: UMC) had guided for a marginal increase in wafer starts on its Q4:CY11 conference call, but now may see wafer starts up more than 5% in Q1. Positive trends are also extending into Q2, as wafer starts at the Taiwanese foundries are now expected to grow by close to 10% sequentially. TSMC and UMC combined are ~30% of CCMP’s business."
"Our FY12 and FY13 EPS estimates of $2.39 and $3.20 are already ahead of
consensus expectations of $2.22 and $3.15, respectively, and remain unchanged.
We are introducing CY13 estimates of $3.27 on $500 million."
For an analyst ratings summary and ratings history on Cabot Microelectronics click here. For more ratings news on Cabot Microelectronics click here.
Shares of Cabot Microelectronics closed at $34.77 yesterday.
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