This one ought to crack up Trader Dave....
*BANC OF AMERICA RAISES PMC-SIERRA <PMCS.O> SHARE PRICE TARGET TO
$350 FROM $250
NEW YORK, Feb 9 (Reuters) - Banc of America Securities on Wednesday changed
investment ratings, price targets and earnings estimates on a variety of semiconductor
companies following Cisco Systems Inc.'s <CSCO.O> strong earnings report on Tuesday.
-- The price target for PMC-Sierra Inc. <PMCS.O> was raised to $350 from $250 due to
evidence of strong industry demand. Shares were trading up 3/4 at 271-1/8 in trade on the
Nasdaq stock market.
-- Applied Micro Circuits Corp.'s <AMCC.O> price target was raised to $400 from $125 due
to ongoing demand for optical networking gear. Shares were up 5-1/8 at 222-1/2 in trade on
the Nasdaq stock market.
-- TranSwitch Corp.'s <TXCC.O> was upgraded to strong buy from buy. The 2001 earnings
per share estimate was raised 10 cents to 70 cents. The price target is $80. Shares were up
4-7/8 at 65-7/8 in trade on the Nasdaq stock market.
-- Vitesse Semiconductor Corp. <VTSS.O> was downgraded to buy from strong buy, in part
due to its quarterly results. Shares were up 3-3/8 at 53-1/4 in trade on the Nasdaq stock
market.
-- Broadcom Corp.'s <BRCM.O> price target was raised to $450 from $300. Its earnings per
share estimates were raised 11 cents to $1.35 in 2000 and raised 15 cents to $1.75. Shares
were down 2 at 333 on the Nasdaq stock market.
-- Conexant Systems Inc.'s <CNXT.O> earnings per share estimate was raised 5 cents to 90
cents for 2000, with the 2001 estimate raised 12 cents to $1.12. Shares were down 5-1/4 at
106-11/16 on the Nasdaq stock market.
-- Exar Corp.'s <EXAR.O> target price was raised to $75 from $60. Earnings per share
estimates for 2000 were raised by 3 cents to 75 cents. Changes to 2001 estimates are
pending. Shares of Exar were up 1/8 at 66-3/4 on the Nasdaq stock market.
-- Galileo Technology Ltd. <GALT.O> was downgraded to buy from strong buy, and the price
target was reduced to $36 from $45. The 2000 earnings per share reduced by 13 cents to
70 cents. The EPS estimate for 2001 was reduced 7 cents to 90 cents a share.
-- Metalink Ltd. <MTLK.O> target price was raised to $45 from $30. The 2001 earnings per
share estimate was raised 1 cent to 10 cents. Shares were down 1-5/8 at 29 in trade on the
Nasdaq stock market.
Deutsche Banc Alex. Brown Expands Its Research <PMCS.O><AMCC.O>
VTSS.O><BRCM.O>
Deutsche Banc Alex. Brown Expands Its Research Coverage of
The Communications Semiconductor Sector
NEW YORK, Feb. 9 /PRNewswire/ -- Deutsche Banc Alex. Brown's Tom Bain
today initiated coverage on the shares of PMC-Sierra, Inc. (PMCS -- 270-1/2),
Applied Micro Circuits Corporation (AMCC -- 217-3/8) and Vitesse Semiconductor
Corporation (VTSS -- 50). Shares of PMC-Sierra were started with an
investment rating of STRONG BUY while shares of Applied Micro Circuits and
Vitesse Semiconductor were assigned a BUY investment rating. Also, Bain
assumed primary coverage of the shares of Broadcom Corporation (BRCM -- 335)
with an investment rating of STRONG BUY.
"Communications technology has been one of the most dynamic growth
industries of the past decade, and in our opinion, the drivers required for
continued expansion are as strong as ever," said Bain. "We see communications
ICs as a complementary play on the strong fundamentals of the telecom and
datacom industries, with a higher intrinsic growth rate and better
profitability than many general-purpose and PC-oriented semiconductor stocks."
While recognizing that the sector is presently trading at lofty
valuations, Bain is positive on the group fundamentals. "We believe this is a
group in which investors can make money, and we expect communications
semiconductor stocks to continue to outperform broader indices," he said.
"With the acceleration in growth over the past several quarters, strong
bookings, and positive guidance we believe the stage is set for continued
revenue and earnings upside."
In addition to the potential for strong revenue and earnings growth,
Bain's investment recommendations take into account the longer-term criterion
of product breadth, quality of management, forward sales visibility, product
transition and execution issues, and the competitive outlook.
For additional information on Deutsche Banc Alex. Brown's equity research,
please contact Chris Cortezi at 410-895-3418.
Additional Information Available Upon Request
Deutsche Banc Alex. Brown identifies the U.S. investment banking
activities of DB Alex. Brown LLC and Deutsche Bank Securities Inc., which are
indirect subsidiaries of Deutsche Bank AG. With over $869 billion in assets
as of September 30, 1999 and approximately 90,000 employees, Deutsche Bank
offers its clients unparalleled financial services throughout the world. It
ranks among the leaders in asset management, capital markets, corporate
finance, custody, cash management and private banking. Deutsche Bank is
divided into five major business units: Global Corporates and Institutions,
Global Technology and Services, Asset Management, Corporates and Real Estates
and Private and Retail Banking.
Deutsche Bank Securities Inc. maintains a net primary market in the common
stock of Broadcom Corporation and PMC-Sierra, Inc. Within the past three
years, Deutsche Bank Securities Inc. or its wholly owned subsidiary, DB Alex.
Brown LLC, has managed or comanaged a public offering of Broadcom Corporation.
Applied Micro Circuits Corporation, Broadcom Corporation, PMC-Sierra, Inc. and
Vitesse Semiconductor Corporation stocks are optionable.
Information herein is believed to be reliable and has been obtained from
sources believed to be reliable, but its accuracy and completeness cannot be
guaranteed. Opinions, estimates, and projections constitute our judgment and
are subject to change without notice. This publication is provided to you for
information purposes only and is not intended as an offer or solicitation for
the sale of any financial instrument. Deutsche Bank Securities Inc., DB Alex.
Brown LLC., and their affiliates worldwide, may hold a position or act as
market maker in the financial instruments of any issuer discussed herein or
act as advisor or lender to such issuer. Transaction should be executed
through a Deutsche Bank entity in the client's home jurisdiction unless
otherwise permitted by law. Deutsche Bank Securities Inc., and DB Alex. Brown
LLC., are members of NYSE and NASD. Deutsche Bank Securities Inc., and DB
Alex. Brown LLC. In the U.S. this report may be distributed either by Deutsche
Bank Securities Inc., or DB Alex. Brown LLC. Interested parties are advised to
contact the U.S. entity they currently deal with, or the U.S. entity that has
distributed this report to them.
SOURCE Deutsche Banc Alex. Brown
-0- 02/09/2000
/CONTACT: Christine Cortezi, 410-895-3418, christine.cortezi@db.com, or
Rohini Pragasam, 212-469-4516, rohini.pragasam@db.com, both of Deutsche Banc
Alex. Brown/
/Web site: dbgroup.com
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6676 02/09/2000 14:48 EST prnewswire.com
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