UPDATE - UBS Upgrades KLA-Tencor (KLAC) to Buy; Foundry Orders Bottoming
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Price: $656.54 +1.29%
Rating Summary:
19 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
19 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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UPDATE - UBS upgrades KLA-Tencor (Nasdaq: KLAC) from Neutral to Buy. PT increased from $43.50 to $49.50.
UBS analyst said, "Main beneficiary as foundry capex in 2012 is likely higher than expected - Our recent checks now find GlobalFoundries’ capex will be $6B in 2012 versus our prior estimate of $4B as 28nm lasts longer than expected. Our analysis also finds TSMC’s semicap orders with KLA historically bottom at 3% of its total (was 3% in Jun-11 quarter) and we expect KLA benefits most from foundries into 1H12 (40% of its orders). We believe KLA’s high $1.4B backlog and sales to Intel (13%) provides support in this downturn as industry orders likely bottom in 1Q12."
"Raising estimates on strength of foundry/logic customer orders in 2H11 - We estimate 2012 total capex will be down -13% yoy but we raised our foundry capex spend estimate in 2012 to flat yoy from down -15% yoy previously based on our recent checks on GlobalFoundries and TSMC. Given KLA’s recent share gains and its strong position at Foundry and Logic customers, we raise our FY12 and FY13 EPS estimates to $4.50 and $4.50 c.ompared to $4.00 and $4.50 previously."
UBS analyst said, "Main beneficiary as foundry capex in 2012 is likely higher than expected - Our recent checks now find GlobalFoundries’ capex will be $6B in 2012 versus our prior estimate of $4B as 28nm lasts longer than expected. Our analysis also finds TSMC’s semicap orders with KLA historically bottom at 3% of its total (was 3% in Jun-11 quarter) and we expect KLA benefits most from foundries into 1H12 (40% of its orders). We believe KLA’s high $1.4B backlog and sales to Intel (13%) provides support in this downturn as industry orders likely bottom in 1Q12."
"Raising estimates on strength of foundry/logic customer orders in 2H11 - We estimate 2012 total capex will be down -13% yoy but we raised our foundry capex spend estimate in 2012 to flat yoy from down -15% yoy previously based on our recent checks on GlobalFoundries and TSMC. Given KLA’s recent share gains and its strong position at Foundry and Logic customers, we raise our FY12 and FY13 EPS estimates to $4.50 and $4.50 c.ompared to $4.00 and $4.50 previously."
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