Analyst Sees Decline in Varian Shares
(Heck - Varian just received a $30 million service contract from Intel)
I never claim to be guru but it seems there is a lot of marginal analysts that need to be weeded out.
There seems to be a lot of analyst with marginal knowledge but they get frisky when stock goes up...
which is up more than 40 percent over the last six months,
Wednesday March 7, 4:36 pm ET
Analyst Sees Decline in Varian Shares Due to Customers' Reduced Spending
NEW YORK (AP) -- Shares of Varian Semiconductor Equipment Associates Inc., a manufacturer of ion implantation systems for semiconductors, may be in for a slump, according to Standard & Poor's analyst David Kaplan.
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Kaplan thinks the stock, which is up more than 40 percent over the last six months, could drop, as some of its customers cut back on spending.
"We believe investors are inappropriately extrapolating Varian's recent growth, based in part on the company's confident comments. In addition, we are concerned by (the company's) heavy exposure to DRAM, (which accounted for) 83 percent of fourth-quarter sales," Kaplan wrote in a note to investors.
DRAM, or dynamic random access memory, is a type of memory used in computers. Kaplan thinks that Varian may feel the pinch of DRAM makers' reduced capital expenditures, as DRAM prices fall due to aggressive sales expectations.
Kaplan reiterated a $45 price target on Varian, which implies a 4.9 percent decline from its closing price Wednesday.
Shares of Varian ended down 38 cents at $47.32 on the Nasdaq Stock Market, and added 43 cents to $47.75 in aftermarket activity. |
