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

To: Jacob Snyder who wrote (48583)	7/20/2010 11:26:47 AM
From: Donald Wennerstrom	2 Recommendations Read Replies (1) \| Respond to of 95587

Jul 20, 2010 11:10 AM Texas Instruments: Street Says Phone Biz Weak; Blames Nokia Posted by Eric Savitz Texas Instruments (TXN) shares are trading lower following its Q2 earnings report last night - and for that, you can blame Nokia (NOK). While EPS were in line with the Street at 52 cents a share, revenues at the chip maker were a hair below the Street, at $3.496 billion, versus $3.52 billion. “TI missed Q2 expectations due to weaker than expected orders from a reeling Nokia,” Wedbush analyst Patrick Wang observed in a research note this morning. Other analysts echoed the observation that Nokia was a major contributor to softening orders late in the quarter. Some other comments from the Street: Clyde Montevirgen, Standard & Poors: He cut his rating on the stock to Hold from Buy, with a new target of $30, down from $33. “Although we see share gains and lower unit costs supporting long-term growth, we are concerned about margins in light of planned capacity additions and are wary of rising inventory,” he writes. Ed Snyder, Charter Equity: “While its financial performance will continue to improve, heavily bearish sentiment will likely preclude the stock from out-performing the market. So while we’re increasing revenue and earnings forecasts to track operation results, we are reducing our rating from Buy to Market Perform to reflect the stock’s prospects near-term. ”Craig Ellis, Caris & Co.: “TXN’s quarter was more mixed than the modest upside we expected, though the outlook was a solid beat,” he writes. Ellis maintains an Average rating on the shares, but cuts his target to $26, from $28. “For mega-cap investors we prefer Intel’s (INTC) direct enterprise leverage.” Michael McConnell, Pacific Crest: He also notes that results for the quarter were “clipped by Nokia weakness.” He keeps a Sector Perform rating on the shares, and remains cautious. “While we view TXN as a long-term share gainer in the analog and embedded markets, we remain cautious on the stock in the near term due to broad evidence of double ordering by customers, declining product lead times, and aggressive capacity additions, which raise the risk of order pushouts and cancellations by customers, as well as likely backlog volatility,” he writes. Glen Yeung, Citigroup: He keeps his Buy rating, but notes that the Street will not like the macro implications of the results. “Macroeconomic conditions remain the paramount concern for investors, in our opinion,” he writes. “TI’s Q2 shortfall, while seemingly temporary, will not contribute to easing fears. We expect more definitive evidence on technology trends in a month, when back-to-school data emerges.” Tore Svanberg, Stifel: Keeps Buy rating, but cuts target to $34, from $36. Rick Schafer, Oppenheimer: He maintains his Outpeform rating, but adds that “we do not expect the prevailing negative investor sentiment to shift on TXN on the group until expectations are reset.” Christopher Danely, J.P. Morgan: He keeps his Neutral stance on the stock, with a price target of $21, still below the current price. “TI stated lead times declined during Q2, and the company expects to lower lead times further during [the second half] as it ramps capacity,” he writes. “We remain concerned TI could experience push-outs after lead times return to normal, which could lead to downside to consensus estimates. According to Rule #3 of our top 10 rules of semi investing, ‘Lead times coming in is bad.’” TXN is down $1.24, or 4.9%, to $24.31.