Goldman Raises Microchip Ratings, Expects Rebound (Update3)
2001-08-13 10:07 (New York)
Goldman Raises Microchip Ratings, Expects Rebound (Update3)
(Updates to add new comment in fourth paragraph.)
New York, Aug. 13 (Bloomberg) -- Goldman, Sachs & Co. raised
ratings on several semiconductor companies including Intel Corp.,
the largest chipmaker, on expectations that the computer-chip
industry's financial outlook may improve in the fourth quarter.
Terry Ragsdale boosted Intel, Analog Devices Inc. and Maxim
Integrated Products Inc. to ``recommend list'' from ``market
outperform.'' He increased Linear Technology Corp. to ``market
outperform'' from ``market perform.''
Ragsdale's changes add to a string of recent chip-company
upgrades and downgrades, indicating that analysts disagree more
than usual about the worth of semiconductor stocks and the
prospects for sales and profit recovering from one of the chip
industry's worst slumps ever. Intel, STMicroelectronics NV and
Altera Corp. have said sales and profit withered this year as
clients use up chip stockpiles built on overestimated demand.
``We think the stocks are headed up for now,'' Ragsdale
wrote in a research note. ``The recovery writing is on the wall,
and we don't see how investors will be able to resist the
inflection point.''
Lehman Brothers Inc. analyst Dan Niles, on the other hand,
recently said to avoid Intel shares. Salomon Smith Barney analyst
Jonathan Joseph has said chip orders are improving, and Credit
Suisse First Boston analyst Charlie Glavin recommends waiting
before investing in the industry. Merrill Lynch & Co. has raised
its recommendations, saying that the worst is over.
Shares of Intel rose 51 cents to $30.46 in early trading,
Maxim rose $1.08 to $49.27, Analog Devices rose $1.15 to $48.60
and Linear rose $1.02 to $45.34. The Philadelphia Semiconductor
Index rose 4.45 points to 597.50.
Intel, based in Santa Clara, California, has cut chip prices
to lure personal-computer buyers after sales plunged. It added
faster and slower models of its Pentium chip to boost sales in
several categories.
Analog Devices, based in Norwood, Massachusetts, makes
semiconductors for computer-networking gear. Sunnyvale, California-
based Maxim is a computer-chip maker. Linear Technology, based in
Milpitas, California, makes chips used in wireless phones and
laptop computers.
--Andy Peters in Atlanta (404) 507-1302, or
andypeters@bloomberg.net, through the Princeton newsroom (609) 279-
4000/atr/*djl/atr/*bab/tm
Story illustration: For a chart of analyst ratings on Intel,
see {INTC US <Equity> ANR <GO>}.
INTC US <Equity> CN
ADI US <Equity> CN
MXIM US <Equity> CN
LLTC US <Equity> CN
NI SEM
NI TEC
NI COS
NI US
NI CA
NI MA
NI TOP
NI SEQ
NI STK
NI EUROPE
NI ASIA
NI ASIAX
NI ELE
NI CPR
-0- (BN ) Aug/13/2001 14:07 GMT |
