Barclays on Semiconductors and Equipment: Top Ideas Remain Tied to Apple and Samsung

Barclays on Semiconductors and Equipment: Top Ideas Remains Tied to Apple and Samsung

Analyst, C. J. Muse, said, "Our top ideas remain leverage to Apple (Nasdaq: AAPL) and Samsung (Broadcom (Nasdaq: BRCM), QUALCOMM (Nasdaq: QCOM), Avago (Nasdaq: AVGO)); 2H recovery in comm infrastructure (Altera (Nasdaq: ALTR), Cavium (Nasdaq: CAVM), LSI Corp (NYSE: LSI)); relative valuation/secular growth in analog (NXP Semi (Nasdaq: NXPI)); and DRAM consolidation (Micron (NYSE: MU)). In SPE, we prefer leverage to Rising Capital Intensity and Mobility (ASML Inc (Nasdaq: ASML), Teradyne (NYSE: TER)), Turnaround Story (Applied Materials (Nasdaq: AMAT)), and Relative Valuation/Reset Expectations (Edwards Group (Nasdaq: EVAC))."

Specifically for AMAT, Muse expects a rather uneventdul earnings call this week, but will listen for any strategy/business model changes from new President, Gary Dickerson...overall, Muse sees shares creeping up to the $15 level.

For Analog Devices (NYSE: ADI): "With estimates already reflecting moderating demand trends in ADI's core industrial business, we look for generally inline July results ($693M/$0.56 vs. cons $692M/$0.56) and October guide ($716M/$0.60 vs. cons $717M/$0.60)."

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