Deutsche Bank has SELL on LRCX. Stock down today on news.
Semi Caps: Deutsche Bank Turns Bearish; Cuts Multiple Ratings
By Eric Savitz
* Friday, October 8, 2010 ET
blogs.barrons.com
Deutsche Bank analyst Peter Kim this morning turned cautious on the semiconductor equipment sector, issuing a Sell rating on the sector, and cutting his stance on a number of individual issues.
“Leading into Q3 earnings, our checks indicate semicap equipment shipments were on pace to drive solid results for the quarter,” he writes in a research note. “[This] coupled with growing expectations for further spending among foundries as they compete for market share helped to drive a surge in [semiconductor equipment] stocks. However, industry fundamentals deteriorated in the quarter ([with a ]sharp drop in memory contract prices and slowing PC related segments). We believe [the] Q4 outlook will be tempered by weaker fundamentals and accordingly downgrade the sector.”
Adds Kim: “We are not convinced CapEx will increase in 2011, but even if it were, we still expect a spending gap to mid 2011 when new fab shells are set to open. Hence, we look for [the] stocks to pull back.”
Here’s a rundown on his specific stock moves:
* Lam Research (LRCX): To Sell from Hold.
* Novellus (NVLS): To Sell from Hold.
* KLA-Tencor (KLAC): To Sell from Hold.
* Varian Semiconductor (VSEA): To Hold from Buy; target to $26, from $42.
* Applied Materials (AMAT): Maintains Hold rating; target to $11, from $12.50.
In today’s trading:
* LRCX is down $2.64, or 6.4%, to $38.80.
* NVLS is down 90 cents, or 3.4%, to $25.61.
* KLAC is down $1.79, or 5.1%, to $33.21.
* VSEA is down $1.22, or 4.2%, to $27.84.
* AMAT is down 19 cents, or 1.6%, to $11.54. |
