Novellus Message Board - Msg: 21524354

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Technology Stocks : Novellus

NVLS 2.400

+2.1%

Jul 24 5:00 PM EST

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To: Gottfried who wrote (3597)	7/20/2005 3:44:04 PM
From: Proud_Infidel	of 3813

Novellus Q2 Gross-Margin Surge A 'Positive Trend' 07.20.05, 3:22 PM ET Banc of America maintained a "neutral" rating and a 12-month price target of $23 on Novellus Systems (nasdaq: NVLS - news - people ) after the company reported second-quarter earnings. "Novellus’ June quarter was right in line. September outlook on the margin was a bit weaker than expected." The research firm said that the company's order guidance is flat to a 10% decrease. "Novellus has a high share at Intel (nasdaq: INTC - news - people ) so their order outlook will reflect the higher 2005 Intel capital expenditures." Banc of America trimmed the 2005 earnings-per-share estimate for Novellus to $1.03 from $1.04. Gross margins rose for Novellus to 47.8% compared with 45.3% last quarter. "A clear positive trend since weak margins have dogged the stock for the last year," said the research outfit. Banc of America said that the company is in "investment mode," as it attempts to boost two major products. "Over the last year management has placed evaluation systems with customers to seed these new products, a strategy that affected margins." Elsewhere in its coverage of semiconductor capital equipment, Banc of America's top pick is Taiwan Semiconductor Manufacturing (nyse: TSM - news - people ) , rated at "buy" with a $9.35 price target. Its least favorite is Teradyne (nyse: TER - news - people ), rated at "sell" with a $9.80 price target.

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