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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: daryll40 who wrote (40242)	12/1/2000 10:21:59 AM
From: Fred Levine	Respond to of 70976

An article in the NY Times financial section that I couldn't bookmark claimed that the Gateway projections may not reflect the entire PC spectrum. Projections included increased foreign sales and, at worst, no gains. General thrust was a modest increase (5-10%) in WW sales. fred

To: daryll40 who wrote (40242)	12/1/2000 10:47:49 AM
From: Fred Levine	Read Replies (1) \| Respond to of 70976

From Credit Suisse-- Applied Materials (AMAT, $40.44, BUY) Target (12 Months): $65 John W. Pitzer 1 415 836 6376 john.pitzer@csfb.com Lowering F01 Estimates To Reflect A Difficult 1HC01 For The Industry. We are lowering our F01 revenue and EPS estimates on AMAT to $9,760 million and $2.05 from $11,260 million and $2.85. Street consensus for F01 is $3.13. We are not adjusting 1Q01(Jan) estimates at this time. Macro issues, not company specific issues. We are lowering estimates on AMAT, KLAC ($27.50, BUY), LRCX ($15.00, BUY), and NVLS ($25.94, BUY) to reflect what we believe will be a difficult 1HC01, in which we believe fundamentals will bottom in the Jun/Jul timeframe. We have reduced our revenue and bookings outlook for AMAT in 1HC01 to $4.7 billion and $4.3 billion from $5.4 billion and $5.2 billion to reflect our views on 1HC01 semiconductor capital plans. (See our industry note 12/01/00 titled “Lowering Estimates to Reflect 1H01 Difficulties. Triggers to Buy Not Apparent.”) Trading at 19X our new CY01 EPS estimate of $2.06 and 3.5X 2001 revenues, we anticipate AMAT to trade in a range with downside bias until the macro issues play out. Late 1Q / early 2Q could provide the best buying opportunity for strong 2H01 appreciation. We maintain our Buy rating. fred