Pru upgrades semi equips AMAT, TER, KLAC (AMAT, TER, KLAC, LRCX, NVLS, KLIC) By Emily Church
Prudential Financial is upgrading the semiconductor equipment makers to a strong buy from accumulate, saying 'as a new cycle could be on the horizon.' In a note to clients, Prudential lifts its recommentations on KLA Tencor (KLAC) , Applied Materials (AMAT) and Teradyne (TER) to strong buys from accumulate. "We believe the logical progression of events over the next few months is: end market stabilization, semiconductor revenue trend reversal, semi equipment order recovery and, the emergence of a new semi upcycle," says analyst Shekhar Pramanick. "We believe we are near the inflection point, where semiconductor revenues could make a directional turn." He points to PC stabilizing, selective handset strenght and that wafer starts are foundries are improving. |
