Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Asyst Technologies (ASYT) Good Value/Where is the Bottom? -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (2175)	7/9/2003 7:28:38 PM
From: SemiBull	Read Replies (1) \| Respond to of 2313

Merrill bulls -Upgrades from Merrill Lynch spark Asyst By Susan Lerner, CBS.MarketWatch.com Last Update: 4:14 PM ET July 9, 2003 NEW YORK (CBS.MW) -- A couple of upgrades from Merrill Lynch sparked massive gains Wednesday even as the broader market took a breather from its recent move higher. From chip-equipment maker Asyst Technologies (ASYT: news, chart, profile) to food retailer Great Atlantic & Pacific Tea Co. (GAP: news, chart, profile) analysts at the world's largest brokerage firm had encouraging words for clients Wednesday. Assist for Asyst A day after Fremont, Calif.-based Asyst Technologies said it won a multi-million dollar order to provide its 300 millimeter automated material handling system to a Singapore firm, Merrill analyst Brett Hodess boosted his recommendation on the stock to "buy" from "neutral" based on the company's market share gains. Following the move, Asyst shares popped $1.57, or 20 percent, to close at $9.37. "This was a highly competitive win," Hodess wrote in a research note. The analyst estimates that Asyst has won over 50 percent of the 300 millimeter automated material handling system market to date and believes other opportunities are improving. "There are still 405 major 300 millimeter fabs [chipmakers] that have not chosen (the) automated material handling system. We believe Asyst is very well positioned to win these, providing upside potential to the fiscal 2005 outlook," Hodess said. Meanwhile, he noted that Asyst's cost-cutting via outsourcing of its tool automation and U.S. manufacturing should help raise profit margins by year-end, possibly as high as 3 percent better than its previous peak. Liquidity concerns have also declined, thanks to an asset sale early this year, Hodess added, noting that he expects Asyst to approach cash-flow breakeven by December. Hodess also touted the stock's "low" valuation relative to peers, which provides a better risk profile and offers greater upside potential. His price target for the shares is $13