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

To: 16yearcycle who wrote (26031)	11/6/1998 12:07:00 PM
From: Jeffrey D	Respond to of 70976

Not sure if the Credit Suisse analysis of AMAT {and their Buy rating} of 10/23/98 has been posted here. The following are portions of their report. What is interesting is that this report and AMAT's news item of completion of restucturing and 4th QTR. loss came out on the same day. Coincidence? Or did Credit Suisse know what AMAT was going to announce prior to this report? I guess Nov. 17th will answer that for us. CS has 12 month price target of $50. Jeff <<CREDIT SUISSE FIRST BOSTON CORPORATION Equity Research-Americas Industry: Semiconductor Capital Equipment BUY Applied Materials (AMAT)Summary The first inflection point, the end to a deterioration in business, is evident on average throughout the industry. The second inflection point, an upturn, could come as soon as Q1:99, more likely calendar Q2. For AMAT, any upturn is apt to magnify EPS leverage, especially after the latest round of restructuring. At least partial positions are warranted prior to November 17, when AMAT reports earnings.>> and, <<Restructuring Lowers AMAT's Breakeven Q4 ending headcount may be below 12,000 (versus 14,000 in July) at AMAT. Together with facilities consolidation and other measures, AMAT may have reduced its cost-structure by $160-200MM per annum. A lowered breakeven, to $600MM per quarter, should enable AMAT to post $0.05-0.10 per share in quarterly EPS, assuming revenues in the $625-650MM range. At $800MM, the leverage kicks in, and double-digit operating margins yielding annualized EPS close to $1.00 cannot be ruled out. Stay tuned on November 17.>>