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Technology Stocks : ASML Holding NV -- Ignore unavailable to you. Want to Upgrade?

To: niek who wrote (1189)	7/28/2006 7:37:18 AM
From: niek	Respond to of 42817

ARM, ASML, Philips upgrade by Sanford Bernstein in sector note 28-July-2006 In a note on the sector, the US broker lifted its ratings on Arm to \'outperform\' and ASML and Royal Philips Electronics to \'market perform\'. The broker said although it has not changed its fundamental view of a supply/inventory downturn in the industry in late 2006 and early 2007, it believes the risks are now embedded in the sector and in company valuations. But the broker cautioned it would only buy selectively as stocks are expected to trade sideways as fundamentals deteriorate. Referring to ARM, Bernstein said the group is a clear long-term winner and the best growth stock in its coverage. Although ARM is negatively impacted by the cycle through both inventory-impacted volumes and overall pricing, the company is now below its fair value and as a result long-term investors should start building positions. It added ASML is also a clear long-term winner, and heading to a monopoly position in lithography. Although the broker does expect ASML to be heavily impacted by a cyclical downturn, most of this is now in the stock. And as for Philips, it said the group is likely to dispose of its Semis stake outright in the very near-term, and should to start trading more in-line with the core earnings of the other divisions which support a 24-25 eur price target.