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

To: 2MAR$ who wrote (51990)	5/2/2011 10:56:52 AM
From: Gottfried	Read Replies (2) \| Respond to of 95358

AMAT forward PE is near 10 for the year ending Oct '11. That's too high according to JPM?

To: 2MAR$ who wrote (51990)	5/2/2011 1:06:42 PM
From: Jacob Snyder	1 Recommendation Respond to of 95358

Applied Materials: J.P. Morgan Cuts Rating; Sees Softer Demand May. 2 2011 Applied Materials shares are losing ground in early trading after J.P. Morgan analyst Christopher Blansett cut his rating on the stock to Neutral from Overweight, while cutting his price target on the stock to $14 from $16. Blansett cites several reasons for the downgrade. For one thing, he notes that the stock has out-performed alternative energy stock over the past few months, with risk/reward now more evenly balanced. He thinks Q1 results will be in line with guidance, but anticipates near-term softening of semi industry capital spending and lower fab utilization rates will lead to lower than expected Q2 guidance, with softness potentially lingering into the third quarter. He adds that he also sees “heightened risk to Applied’s solar segment” through the rest of 2011 due to a deteriorating supply/demand picture for the solar industry as a whole. “We believe the majority of Applied’s solar equipment sales falls into the category of volume purchases which we believe are at risk of declining significantly over the next few quarters if demand for solar [power equipment] in Germany and Italy does not rebound significantly,” he writes. Adds Blansett: “Module inventory has built up in Europe and unless a draw-down occurs, we think much of the aggressive capacity build-out plans for the solar industry will be put on hold at a minimum.” blogs.forbes.com