Research ALERT-Salomon Raises Chip Equipment Maker Targets
March 25, 2002 12:05:36 (ET)
NEW YORK, March 25 (Reuters) - Salomon Smith Barney on Monday raised its price targets on six semiconductor equipment makers, citing strong demand and improved manufacturing technologies.
The investment bank raised its 12-month price target on Applied Materials Inc. (AMAT,Trade) to $78 from $48, and increased its 12-month KLA Tencor Corp. (KLAC,Trade) target to $78 from $58.
"Our price target increases reflect the fact that these stocks have already broken through or are approaching previous price targets but that fundamental strength, as evidenced by order momentum, continues to build," Salomon said.
Salomon also upgraded price targets for Lam Research Corp. (LRCX,Trade), Novellus Systems Inc. (NVLS,Trade) and Teradyne Inc (TER,Trade) in a research note. It raised both the price target and rating for Mykrolis Corp ((MYK.N)).
It estimated a potential 78 percent price appreciation in the chip makers, saying earnings were set to outgrow price appreciation by five times.
At Friday's close on the Nasdaq stock exchange, KLA Tencor was at $65.26, Novellus was at $52.11, Lam Research was at $28.49, and Applied Materials was at $51.53.
Teradyne closed at $37.98 on the New York Stock Exchange, and Mykrolis ended the week at $13.05. |
