RESEARCH ALERT - Chip makers' target prices raised
CHICAGO, Dec 8 (Reuters) - Gruntal & Co. raised price targets for six
semiconductor makers on Wednesday, based on its belief that the current
semiconductor rally will continue well into 2000 and even 2001. -- In a
research note, Gruntal said it believes the Semiconductor Industry
Association's recent upward revision of its forecast for worldwide
industry growth in 2000 is too conservative. SIA raised its growth
forecast to 20.8 percent from 15 percent, but Gruntal said it expects
25 percent. -- said that after three years of cuts in industry capital
spending, a tighter supply is setting the stage for a "powerful upturn."
-- said chip demand from North America and Asia is strong, and the
European market is reviving. -- said the Internet is creating an upheaval
throughout the technology sector, and massive upgrades of telecommunications
infrastructure is driving demand. -- said a broad range of telecommunications
and technology companies raised large amounts of capital in the last
two years and will be upgrading their infrastructure to deliver new
products in 2000. -- said the chip industry is likely to see a windfall
during the first half of 2000 as companies start spending on purchases
that they had postponed.
* Burr-Brown Corp. <BBRC.O> -- raised its intermediate-term (up to six
months) price target to $60 from $45; raised its long-term (six to 18
months) target to $70 from $60; shares of Tucson, Ariz.-based Burr-
Brown were off 7/16 at 50-11/16.
* Integrated Device Technology <IDTI.O> -- raised its intermediate-term
target to $35 from $25; raised its long-term target to $45 from $35;
cited improvements from company's repositioning its product line and
continued strength in SRAM business; shares of Santa Clara, Calif.-
based IDT rose 1/16 at 27-9/16.
* LSI Logic Corp. <LSI.N> -- raised its intermediate-term target
to $85 from $70; raised its long-term target to $100 from $80;
shares of Milpitas, Calif.-based LSI were off 15/16 at 67-7/16.
* Motorola Inc. <MOT.N> -- raised its intermediate-term target to $150
from $105; raised its long-term target to $200 from $125; cited
company's continued strength in the wireless market and recovery in
its semiconductor business; shares of Schaumberg, Ill.-based Motorola
rose 4-3/4 at 136-1/4.
* National Semiconductor Corp.<NSM.N> -- raised its intermediate-term
target to $58 from $40; raised its long-term target to $70 from $60;
cited company's exceptional strength in wireless and wired communications;
shares of Santa Clara, Calif.-based National Semiconductor were off 1/4
at 46-15/16/
* Texas Instruments Inc. <TXN.N> -- raised its intermediate-term target
to $135 from $100; raised its long-term target to $150 from $120;
shares of Dallas-based Texas Instruments rose 5-7/16 to 109-1/2.
((--Chicago Equities News at 312 408 8787, chicago.equities.newsroom@reuters.com))
REUTERS
Rtr 11:51 12-08-99
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