Barclays on U.S. Display & Lighting: Assuming Coverage with a Neutral Rating
Tweet
Share
E-mailGet Alerts GLW Hot Sheet
Price: $31.52 --0%
Rating Summary:
11 Buy, 13 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 10 | New: 5
Rating Summary:
11 Buy, 13 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 10 | New: 5
Join SI Premium – FREE
Barclays on U.S. Display & Lighting: Assuming Coverage with a Neutral Rating
Barclays analyst, Amir Rozwadowski, said, "We are assuming coverage of the U.S. Display & Lighting sector with a Neutral rating. While recent share price declines have driven valuation levels to test recessionary lows, limited visibility on the pace of demand stabilization and, more importantly, the ultimate trajectory of a recovery suggests that it is still too early to call a trough on the sector. As we expect utilization levels to continue to come down, we therefore prefer component related names vs. capex leveraged plays. Corning is therefore our top sector pick."
"Corning (NYSE: GLW) is Our Top Pick: Given our preference for component vs. equipment names, and the LCD vs. the LED market, Corning is our top sector pick with a Overweight rating. While we establish below consensus estimates on near-term demand declines, we consider the company best positioned to benefit from a slow recovery, particularly given trough valuation levels and a high likelihood of proactive capital deployment in the next 6-12 months. We also assume coverage of Aixtron (Nasdaq: AIXG), Cree (Nasdaq: CREE), IPG Photonics (Nasdaq: IPGP), Orbotech (Nasdaq: ORBK), Veeco Instruments (Nasdaq: VECO), and SemiLEDs (Nasdaq: LEDS) with Equal Weight ratings. (AIXG, IPGP, ORBK, VECO, LEDS all lead covered by Olga Levinzon)."
Other Highlighted Points Include: 1) Macro Conditions Continue to Weigh on End Markets; Favor Components over Equipment: Checks out of Asia continue to indicate declining utilization rates for LED and LCD markets....2) Prefer LCD vs. LED Exposed Names: The LED market continues to face headwinds from overcapacity, making timing a potential trough - particularly in the MOCVD
names - difficult...
Barclays analyst, Amir Rozwadowski, said, "We are assuming coverage of the U.S. Display & Lighting sector with a Neutral rating. While recent share price declines have driven valuation levels to test recessionary lows, limited visibility on the pace of demand stabilization and, more importantly, the ultimate trajectory of a recovery suggests that it is still too early to call a trough on the sector. As we expect utilization levels to continue to come down, we therefore prefer component related names vs. capex leveraged plays. Corning is therefore our top sector pick."
"Corning (NYSE: GLW) is Our Top Pick: Given our preference for component vs. equipment names, and the LCD vs. the LED market, Corning is our top sector pick with a Overweight rating. While we establish below consensus estimates on near-term demand declines, we consider the company best positioned to benefit from a slow recovery, particularly given trough valuation levels and a high likelihood of proactive capital deployment in the next 6-12 months. We also assume coverage of Aixtron (Nasdaq: AIXG), Cree (Nasdaq: CREE), IPG Photonics (Nasdaq: IPGP), Orbotech (Nasdaq: ORBK), Veeco Instruments (Nasdaq: VECO), and SemiLEDs (Nasdaq: LEDS) with Equal Weight ratings. (AIXG, IPGP, ORBK, VECO, LEDS all lead covered by Olga Levinzon)."
Other Highlighted Points Include: 1) Macro Conditions Continue to Weigh on End Markets; Favor Components over Equipment: Checks out of Asia continue to indicate declining utilization rates for LED and LCD markets....2) Prefer LCD vs. LED Exposed Names: The LED market continues to face headwinds from overcapacity, making timing a potential trough - particularly in the MOCVD
names - difficult...
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Berenberg Starts Lloyds TSB Group (LYG) at Hold, 'shares are fairly valued'
- Biogen (BIIB) PT Lowered to $300 at H.C. Wainwright
- Marex Group (MRX) Prices 15.38M Share IPO at $19/sh
Create E-mail Alert Related Categories
Analyst Comments, New CoverageRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
