TO ALL:
RESEARCH ALERT- Semi equipment stocks downgraded
Reuters, Friday, October 17, 1997 at 15:22
SAN FRANCISCO, Oct 17 (Reuters) - BancAmerica Robertson
Stephens analyst Sue Billat said she downgraded a group of
semiconductor equipment stocks based on current valuations and
on uncertainty in the second half of 1998.
-- Billat said she went to a long-term attractive from a
buy on the sector including companies such as Applied Materials
Inc (NASDAQ:AMAT), Etec Systems (NASDAQ:ETEC), KLA-Tencor Inc (NASDAQ:KLAC),
Photronics Inc (NASDAQ:PLAB) and PRI Automation Inc (NASDAQ:PRIA).
-- Billat said the high valuations in the sector cannot be
supported, due to uncertainty going forward.
-- "There is a lethargic PC market, disappointing earnings
announcements from LSI Logic, Intel and Compaq and against this
backdrop, the semiconductor equipment industry is nearing an
opportunity to convert (to new manufacturing technology),"
Billat said. "We have got an increasing level of uncertainty in
the second half (of next year)."
-- Shares of Applied Materials was off 3-1/4 to 41,
KLA-Tencor fell 5-1/4 to 57, Etec Systems was off 6 to 47-1/2,
PRI Automation tumbled 5-1/4 to 43, Phototronics was down three
to 50. On Thursday, semiconductor equipment shares tumbled
after disappointing order/shipping data for September.
Copyright 1997, Reuters News Service |
