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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (22864)	4/19/2005 7:59:49 AM
From: sixty2nds	Respond to of 95621

07:17 NVLS Novellus: Color on Quarter (24.30 ) -Update- Analysts not happy with NVLS's results as gross margins continue to erode reflecting tougher pricing, product mix and impact from few large customers. There is, however, one firm upgrading the shares (see 06:31 comment)... BofA noting they think margin problems are being pushed down to the supplier base. Subsystem suppliers such as AEIS , MKSI, HELX, UCTT will likely suffer the fallout. Firm is cutting their tgt on NVLS to $23 from $25... UBS noting they viewed mgmt's tone to be more conservative citing ongoing high gas prices, but its Jun-05 order guidance was for bookings to be flat q/q at $302M. Firm's checks continue to suggest that the co is benefiting from order strength for NAND flash equipment from Toshiba and Samsung. Given lower visibility into the co's gross margin regarding customer equipment add-ons and shipment terms, they have modeled a more conservative gross margin ramp to 50% in 2H06. Taking target down to $26 from $29, maintaining Neutral rating.