Baird raises Intel, other semiconductor stocks
reuters.com
Fri Mar 4, 2011 4:49am EST
* Upgrades Intel, Altera to outperform from neutral
* Says inventories remain lean
March 4 (Reuters) - Robert W. Baird upgraded Intel Corp (INTC.O), Altera Corp (ALTR.O) and some other semiconductor stocks and said it expects PC and wireless infrastructure trends to rebound in the second half of 2011.
The brokerage said its recent field research points to a continued rebound in order trends for semiconductors, resilient lead times, lean inventories, and a favorable pricing environment, which should lead gross margins to continue tracking at above-historical levels.
Steady lead times, notably for commodity components, remain well above average, suggesting no serious inventory correction is likely in the near term, the brokerage said.
Ongoing concerns about inflation and higher raw material prices could lead to some inventory rebuild, which could help semiconductor orders over the next few quarters, Baird analysts said.
The brokerage also upgraded Fairchild Semiconductor International (FCS.N), ON Semiconductor Corp (ONNN.O), STMicroelectronics (STM.N) and Lattice Semiconductor Corp (LSCC.O) to "outperform". Below are the price target and rating changes: Company Rating Target
New Old New Old Altera Corp Overweight Neutral $53 $38 Fairchild Semiconductor Overweight Neutral $28 $16 Intel Corp Overweight Neutral $27 $25 Lattice Semiconductor Overweight Neutral $10 $7 ON Semiconductor Overweight Neutral $16 $12 STMicroelectronics Overweight Neutral $17 $12 Xilinx Inc Neutral Neutral $40 $25 |
