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

To: Proud_Infidel who wrote (14696)	4/29/2005 8:48:05 AM
From: matt dillabough	Read Replies (2) \| Respond to of 25522

KLAC KLA-Tencor: Color on Quarter (40.02 ) With KLA-Tencor issuing dismal guidance last night, the analyst community seems to be geared towards the notion the summer in semis is likely going to hurt... Morgan Stanley suggests that KLAC is likely to be weak as consensus estimates come down. Firm concludes that 2005 capex plans will aggravate current capacity/demand imbalances in the semiconductor industry. Consequently, they anticipate a more significant industry downturn as we exit 2005 and go into 2006. Firm does not think this is discounted in current share prices... UBS taking their tgt to $48 from $60 noting the stock has historically bottomed at 2.5x book value, which is equivalent to about $36/share... Smith Barney noting KLAC's CQ2 order guidance for flat Q/Q off a lower-than-expected CQ1 order number was clearly disappointing. Compounding KLAC's comments are firm's very recent checks that suggest that in the past week or so, AMAT has become incrementally less optimistic about production levels looking out into the CQ3:05 (Oct) quarter. Whereas checks suggest AMAT was previously expecting 25%+ ramp in CQ3, the ramp is now seen more in the 5-10% range Q/Q with a bigger uptick not seen until CQ4:05.