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

To: Proud_Infidel who wrote (28902)	2/27/2006 10:24:08 AM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95625

Semi Equip: Five Downgrades Ripple Through Industry [delayed] Monday Feb 27 2006 06:31:05 EST Ridgeland, MS, FEB 27, 2006 (EventX/Knobias.com via COMTEX) -- This morning Citigroup Smith Barney downgraded five semiconductor equipment manufacturers. After a trip to Asia, the Smith Barney analysts were "less optimistic on 2H:06 order growth." The note cited "signs of NAND (order) pushouts" and a historically high level of tool orders versus chip production rates. As a result risk is increasing and now "little margin for error" according to the report. Analysts do not see a "big downside, but pushouts mean a more neutral view of group seems warranted." AMAT, AEIS, ASYT were cut to Hold. LRCX and MTSH were cut to Sell. AMAT (-1.3% pre-mkt): Tgt to $20 from $25. Foundry dependent for new growth, space where Smith Barney is "less optimistic on a big 2H uptick." AEIS (-1.9% pre-mkt): Tgt to $16 from $21; Derivative play on AMAT. ASYT (-4.5% pre-mkt): Tgt unchanged at $10; Downgraded on valuation. LRCX (-3% pre-mkt): Tgt to $38 from $42; Big exposure to NAND Flash (Samsung) where pushouts obseved. MTSN (-2.7% pre-mkt): Tgt to $9 from $12.50. Big Taiwan DRAM and Samsung exposure. RATINGS REITERATED KLAC (-0.6% pre-mkt): Hold reiterated. Tgt to $52 from $55. NVLS (-0.9% pre-mkt): Buy reiterated. Tgt to $32 from $36. TESTING/PACKING NAMES HOLDING UP Shares of A, CMOS, KLIC, TER, IMOS are not showing the pre-market sales activity of the front end names above. (-) AMKR (-0.4% pre-mkt): Amkor is modestly lower in very light trading. + FLASH MEMORY SNDK (+4.1% pre-mkt) and FLSH (+5.2% pre-mkt) are benefiting from Smith Barney upgrades. + INTEL INTC (+0.9% pre-mkt) won an upgrade to Mkt OP from JMP Securities. Semi Holders (SMH +0.5% pre-mkt) also reflect a positive pre-mkt bias.