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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: gambler2 who wrote (13650)	12/19/1997 12:04:00 PM
From: Darin	Read Replies (1) \| Respond to of 70976

To All, Its pretty interesting that Lehman downgrades the whole group today (post folllows) EXCEPT AMAT. The last from Lehman on AMAT was still a BUY reiteration on 12/12/97 (post follows). Todays downgrades ************* NEW YORK, Dec 19 (Reuters) - Lehman Brothers said its analyst Edward White Jr lowered his ratings on most companies in the semiconductor equipment sector due to the potential impact of Asia's economic crisis. -- Advanced Energy Industries Inc (Nasdaq:AEIS - news) was cut to outperform from buy. The stock was unchanged at 13 in morning trading. -- Electroglas Inc (Nasdaq:EGLS - news) was cut to neutral from buy. It was off 15/16 at 15-1/16. -- FSI International Inc (Nasdaq:FSII - news) was cut to neutral from outperform. It was off 3/4 at 13-1/8. -- Kulicke & Soffa Industries Inc (Nasdaq:KLIC - news) was cut to neutral from outperform. It was off 6/16 at 17-7/16. -- Lam Research (Nasdaq:LRCX - news) was cut to neutral from outperform. Lam was up 13/16 at 29-3/8. -- Novellus (Nasdaq:NVLS - news) was cut to neutral from outperform. It was off 19/32 at 30-1/2. -- LTX Corp (Nasdaq:LTXX - news) was cut to neutral from buy. LTX was off 3/8 at 4-1/2. -- PRI Automation Inc (Nasdaq:PRIA - news) was reiterated as a buy, but its 1998 earnings estimate went to $1.30 per share from $1.40. It was off 3/4 at 27-1/8. -- Silicon Valley Group Inc (Nasdaq:SVGI - news) was cut to neutral from outperform. It was off 3/16 at 18-3/4. -- SpeedFam International (Nasdaq:SFAM - news) was reiterated as a buy. It was off 1/8 at 23-3/4. -- Teradyne Inc (NYSE:TER - news) was cut to neutral from buy. It was off 4/16 at 30-5/16. ************************* Last week's buy reiteration on AMAT: Headline: Applied Materials: EPS Estimate Reduced To Factor In S. Korean Impact Author: Edward C. White, Jr., CFA 1(212)526-4744 Rating: 1 Company: AMAT Country: EPS CUS Industry: ELECTS Ticker : AMAT Rank(Prev): 1-Buy Rank(Curr): 1-Buy Price : $27 5/16 52wk Range: $54-17 Price Target: $63 Today's Date : 12/12/97 Selected Growth Stock List Fiscal Year : OCT ------------------------------------------------------------------------------ EPS 1997 1998 1999 - - QTR. Actual Prev. Curr. Prev. Curr. Prev. Curr. 1st: 0.24A 0.51E 0.47E 0.63E 0.63E - - 2nd: 0.27A 0.53E 0.49E 0.65E 0.65E - - 3rd: 0.38A 0.54E 0.51E 0.67E 0.67E - - 4th: 0.49A 0.57E 0.53E 0.70E 0.70E - - ------------------------------------------------------------------------------ Year:$ 1.38A $ 2.15E $ 2.00E $ 2.65E $ 2.65E $ - $ - Street Est.: $ 2.14E $ 2.13E $ 5.12E $ 5.44E $ - - $ - - ------------------------------------------------------------------------------ Price (As of 12/11): $27 5/16 Revenue (1997): 4.1 Bil. Return On Equity (97): 19.7 % Proj. 5yr EPS Grth: 25.0 % Shares Outstanding: 375.8 Mil. Dividend Yield: Nil Mkt Capitalization: 10.26 Bil. P/E 1998; 1999 : 13.7 X; 10.3 X Current Book Value: $7.64 /sh Convertible: None Debt-to-Capital: 17.6 % Disclosure(s): C, A ------------------------------------------------------------------------------ * S. Korean chip manufacturers are delaying capital investments, and although the company is not yet guiding estimates down, we are reducing our FY98 EPS projection on Applied Materials to $2.00 from $2.15. * One reason for the reduction is that Kulicke & Soffa, an assembly equipment manufacturer, is experiencing order delays from South Korean customers, due to restricted access to funds to finance equipment investments. * Assembly equipment trends tend to differ from front-end trends, and often the two segments often do not turn together. However, the same capital constraints that are affecting assembly may dampen near-term front-end orders. * Overall, Applied Materials remains well positioned, because of its high concentration of 0.25 and 0.18 micron equipment, which should become a much greater share of total equipment investment in 1998. * We are reiterating our 1 (BUY) rating on Applied Materials. The shares have declined nearly 48% since 8/97, even though EPS could grow more than 40% in FY98. At 12.6X calendarized 1998 EPS, we think the shares offer opportunity.