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To: DJBEINO who wrote (8698)	10/10/2000 9:17:29 AM
From: Ram Seetharaman	Respond to of 9582

Solomon Smith & Barney downgrades XLNX and ALTR this morning - the chip sector is looking like shit this morn! XLNX, ALTR down 15 % in pre-markets!

To: DJBEINO who wrote (8698)	10/10/2000 9:28:24 AM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 9582

Tuesday October 10, 9:18 am Eastern Time RESEARCH ALERT-Altera, Xilinx are downgraded NEW YORK, Oct 10 (Reuters) - Salomon Smith Barney and Lehman Bros on Tuesday cut their ratings on software companies Altera Corp. (NasdaqNM:ALTR - news) and Xilinx Inc. (NasdaqNM:XLNX - news). -- Salomon cut Altera to outperform from buy and lowered its 12-month price target to $60 from $68. Altera shares closed Monday at 40-14/16. -- Salomon downgraded Xilinx to outperform from buy and cut its 12-month price target to $100 from $110. Xilinx shares closed Monday at 79-2/16. -- said downgrades of Altera and Xilinx were due to continued deterioration in the environment for general purpose semiconductor chips. -- said with supply generally loosening, it believes overheated environment in first half of year has cooled. -- said, ``We believe this limits the amount of earnings upside over the next six to nine months, particularly relative to the high end of expectations.'' -- also cited companies' high dependency on 'turns' business and relatively high exposure to Europe, making them particularly vulnerable to recent changes in market environment. -- Lehman cut Altera to neutral from outperform and lowered 12-month price target to $55 from $75. -- Lehman cut Xilinx to neutral from outperform and lowered 12-month price target to $90 from $100. -- said although it expects Altera and Xilinx to report better-than-expected EPS, driven by revenue growth, it believes revenue growth rates for the next two quarters are likely to slow noticeably as both end customers and contract manufacturers re-balance inventory and order rates. -- said near-record margin levels will make future EPS upside dependent on higher revenue growth. -- believes this is two-quarter problem, such as in mid-1994, as opposed to beginning of next cyclical downturn