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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (3581)	5/9/2005 11:53:48 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 3813

Novellus' Q2 Order Upside 'Appears More Limited' 05.09.05, 11:47 AM ET Bear Stearns maintained an "outperform" rating on Novellus (nasdaq: NVLS - news - people ) with a target price of $33. The chip-equipment maker has been hindered by poor margin performance, but the research outfit sees a positive change: "Our checks suggest that Novellus is getting much more serious about margin improvement. If this is remedied, we believe that investors would be very encouraged by the resulting risk/reward proposition." Bear Stearns sees the appointment of John Chenault as chief financial officer on an interim basis as an indicator that "margin improvement is now clearly being made a high priority. Chenault has strong operational experience at Novellus and will push to get the company back to its historical margin ranges." While the research outfit sees June [second] quarter guidance in line, it said that "order upside appears more limited than we had initially believed." Bear Stearns added, "The bottom in fundamentals appears to be here, but the rate of reacceleration remains up for debate."