Barclays on U.S. Semiconductors: Risk/Reward Moving in Favor on Long Side Given Recent Pullback
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Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on U.S. Semiconductors: 1Q12 Earnings Preview - Risk/Reward Moving More in Favor on the Long Side Given Recent Pullback
Analyst, C.J. Muse, said, "Since mid-1Q we have suggested a range-bound thesis for Semis (SOX $400-450) based on our outlook for a gradual recovery combined with nearly full valuations. This said, we maintained our positive stance on Semis in anticipation of an inventory replenishment led uplift that would drive shares higher into 2H12. With the SOX 7% off its March highs and many names retracing to below January highs, we think the set-up into earnings is beginning to turn positive."
For individual stocks, Muse continues to recommend leverage to Apple (Nasdaq: AAPL) and Samsung - Top Picks include; Broadcom (Nasdaq: BRCM), QUALCOMM (Nasdaq: QCOM), SkyWorks (Nasdaq: SWKS), Avago (Nasdaq: AVGO). Muse suggests being more cautious on Triquint Semi (Nasdaq: TQNT).
Muse Prefers Intel (Nasdaq: INTC)(PT raised from $26 to $28) to AMD (NYSE: AMD), but sees profit taking despite what PC demand is reported.
In Communication Infrastructure: Top picks include: Altera (Nasdaq: ALTR) and Cavium (Nasdaq: CAVM).
Other notables in the sector include: NXP (Nasdaq: NXPI) and Avago (Nasdaq: AVGO), Micron (NYSE: MU), LSI (NYSE: LSI) and Cypress (NYSE: CY)
FY12 EPS estimates raised slightly on INTC, AMD, BRCM, Lam Research (Nasdaq: LRCX), and MKS Instruments (Nasdaq: MKSI).
Analyst, C.J. Muse, said, "Since mid-1Q we have suggested a range-bound thesis for Semis (SOX $400-450) based on our outlook for a gradual recovery combined with nearly full valuations. This said, we maintained our positive stance on Semis in anticipation of an inventory replenishment led uplift that would drive shares higher into 2H12. With the SOX 7% off its March highs and many names retracing to below January highs, we think the set-up into earnings is beginning to turn positive."
For individual stocks, Muse continues to recommend leverage to Apple (Nasdaq: AAPL) and Samsung - Top Picks include; Broadcom (Nasdaq: BRCM), QUALCOMM (Nasdaq: QCOM), SkyWorks (Nasdaq: SWKS), Avago (Nasdaq: AVGO). Muse suggests being more cautious on Triquint Semi (Nasdaq: TQNT).
Muse Prefers Intel (Nasdaq: INTC)(PT raised from $26 to $28) to AMD (NYSE: AMD), but sees profit taking despite what PC demand is reported.
In Communication Infrastructure: Top picks include: Altera (Nasdaq: ALTR) and Cavium (Nasdaq: CAVM).
Other notables in the sector include: NXP (Nasdaq: NXPI) and Avago (Nasdaq: AVGO), Micron (NYSE: MU), LSI (NYSE: LSI) and Cypress (NYSE: CY)
FY12 EPS estimates raised slightly on INTC, AMD, BRCM, Lam Research (Nasdaq: LRCX), and MKS Instruments (Nasdaq: MKSI).
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