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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (14326)	4/14/2005 3:43:42 PM
From: etchmeister	Read Replies (1) \| Respond to of 25522

There we go - Lam Research Vulnerable To Drop In Memory Spending 04.14.05, 11:03 AM ET Tear Sheet \| Chart \| News Banc of America Securities reiterated a "neutral" rating and 12-month target price of $26 on Lam Research (nasdaq: LRCX - news - people ), saying shares of the semiconductor company appear "fairly valued." The research firm said Lam's fiscal third-quarter results were in line with expectations, with operating earnings per share of 44 cents, versus the Street consensus of 43 cents. Revenue was $349.3 million, versus company guidance of $340.0 million to $355 million. Orders decreased 19% sequentially to $315.0 million, in-line with guidance of down 15% to 20%. Banc of America said memory still comprises a larger portion of Lam's orders, with 64% of fiscal third-quarter orders, and a projected 40% to 45% of orders for next quarter. According to the research firm, a dearth of business from Intel (nasdaq: INTC - news - people ) and low market share in Japan suggest Lam shares are more vulnerable than other semi-equipment stocks to a pullback in memory spending. "A decline in memory cap-ex in the second half, as we expect, would impact Lam's 2006 revenues," Banc of America said. The research firm said its fiscal 2006 earnings estimate of $1.46 per share versus the consensus estimate of $1.84 "reflects our view of the declining prospects for second half memory orders and option expense." Banc of America's top pick in its semiconductor capital equipment coverage is Taiwan Semiconductor (nyse: TSM - news - people ), rated at "buy" with a $9.35 target price. Its least favorite pick is Teradyne (nyse: TER - news - people ), rated at "sell" with a $10.75 target price. Region New Orders Revenue ----------------- ------------- --------- North America 16% 17% Europe 19% 13% Japan 22% 18% Korea 14% 35% Asia Pacific 29% 17%