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Technology Stocks : Cymer (CYMI)

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To: Chris Grosse who started this subject6/27/2004 9:14:45 AM
From: mopgcw   of 25960
 
Cymer (CYMI-NNM)
by Jefferies (33.68, June 23)
We are initiating with a Buy rating and a 38 target price, based on 19 times our 2005 estimate. As the dominant supplier of DUV light sources to lithography tool manufacturers, Cymer has enjoyed industry-superior growth as chip makers migrate to deep ultraviolet wavelengths. Shares of Cymer tend to outperform its peer group during a product adoption cycle, [or when] the onset of an upturn when pent-up demand for lithography tools is unleashed and depleted laser inventories must be replenished. We consider shares a core small-cap holding in the equipment universe and recommend that investors view a selloff in the equipment sector as an opportunity to build long-term positions in the stock.
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