Niska Gas Storage (NYSE: NKA), Primo Water Co. (NASDAQ: PRMW), Intersil Corp. (NASDAQ: ISIL), KKR (NYSE: KKR), Linear Technology Co. (NASDAQ: LLTC) and LPL Investment Holdings Inc. (NASDAQ: LPLA) downgraded by analysts.
Niska Gas Storage (NKA) was downgraded by Raymond James (NYSE:JRF) from a “Market Perform” rating to an “Underperform” rating.
Primo Water Co. (PRMW) was downgraded by Stifel Nicolaus from a “Buy” rating to a “Hold” rating.
Intersil Corp. (ISIL) was downgraded by Longbow Research from a “Buy” rating to a “Neutral” rating.
KKR (KKR) was downgraded by Goldman Sachs (NYSE:GS) from a “Buy” rating to a “Neutral” rating.
Linear Technology Co. (LLTC) was downgraded by Longbow Research from a “Buy” rating to a “Neutral” rating.
LPL Investment Holdings Inc. (LPLA) was downgraded by Goldman Sachs from a “Buy” rating to a “Neutral” rating.
Showing posts with label Linear Technology. Show all posts
Showing posts with label Linear Technology. Show all posts
Friday, August 12, 2011
Thursday, August 11, 2011
Intel (INTC) (QCOM) (BRCM) (NXPI) Top Barclays Semi List
Going against the grain on the outlook for the semiconductor market, Barclays Capital analyst C.J. Muse said in a long report this morning that he has raised his rating on the sector from "Neutral" to "Positive." His favorites in the sector are Intel (NASDAQ:INTC), Qualcomm (NASDAQ:QCOM) and Broadcom (NASDAQ:BRCM).
Muse said he sees the downward trend in the industry as a “mid-cycle correction” rather than a long-term downturn in the semiconductor industry.
While acknowledging the industry won't perform as in the past, Muse sees it growing at an annual rate of 6 percent to 8 percent going forward. He cites a 0.97 correlation between the semi market and global GDP growth rate, which appears to be headed for 7 percent in 2011 and 2012, according to the calculations of Muse.
Along with his positive outlook on Intel, which he boosted its rating to "Overweight," Muse also did the same for Altera (ALTR) and Spansion (CODE). Top picks include NXP Semiconductors (NXPI), Qualcomm (QCOM), and Broadcom (BRCM), which are also rated "Overweight."
On the negative side, Muse lowered his rating on Xilinx (XLNX), Analog Devices (ADI), Micron Technology (MU) and Nvidia (NVDA), dropping them to "Equal Weight."
He reiterated his "Equal Weight" ratings on Texas Instruments (TXN), Freescale Semiconductor (FSL) and Linear Technology.
Muse said he sees the downward trend in the industry as a “mid-cycle correction” rather than a long-term downturn in the semiconductor industry.
While acknowledging the industry won't perform as in the past, Muse sees it growing at an annual rate of 6 percent to 8 percent going forward. He cites a 0.97 correlation between the semi market and global GDP growth rate, which appears to be headed for 7 percent in 2011 and 2012, according to the calculations of Muse.
Along with his positive outlook on Intel, which he boosted its rating to "Overweight," Muse also did the same for Altera (ALTR) and Spansion (CODE). Top picks include NXP Semiconductors (NXPI), Qualcomm (QCOM), and Broadcom (BRCM), which are also rated "Overweight."
On the negative side, Muse lowered his rating on Xilinx (XLNX), Analog Devices (ADI), Micron Technology (MU) and Nvidia (NVDA), dropping them to "Equal Weight."
He reiterated his "Equal Weight" ratings on Texas Instruments (TXN), Freescale Semiconductor (FSL) and Linear Technology.
Friday, July 29, 2011
Rare Element (REE) (TIF) (WEN) (WSM) (ERII) (LLTC) Get New Coverage
Rare Element Resources (NYSE: REE), Tiffany & Co. (NYSE: TIF), Wendys Arbys Group Ord Shs Class A (NYSE: WEN), Williams Sonoma Inc (NYSE: WSM), Energy Recovery Inc (NASDAQ: ERII) and Linear Technology Co. (NASDAQ: LLTC) had new coverage initiated on them by analysts.
Global Hunter Securities initiated coverage on Rare Element Resources (REE). They placed a “Buy” rating and a price target of $18.50 on the company.
Merriman Curhan Ford initiated coverage on Tiffany & Co. (TIF). They placed a “Neutral” rating on the company.
Janney Montgomery Scott initiated coverage on Wendys Arbys Group (WEN). They placed a “Buy” rating on the company.
Merriman Curhan Ford initiated coverage on Williams Sonoma Inc (WSM). They placed a “Buy” rating on the company.
Rodman & Renshaw initiated coverage on Energy Recovery Inc. (ERII). They placed a “Market Perform” rating on the company.
Wells Fargo & Co. (NYSE:WFC) initiated coverage on Linear Technology Co. (LLTC). They placed an “Outperform” rating on the company.
Global Hunter Securities initiated coverage on Rare Element Resources (REE). They placed a “Buy” rating and a price target of $18.50 on the company.
Merriman Curhan Ford initiated coverage on Tiffany & Co. (TIF). They placed a “Neutral” rating on the company.
Janney Montgomery Scott initiated coverage on Wendys Arbys Group (WEN). They placed a “Buy” rating on the company.
Merriman Curhan Ford initiated coverage on Williams Sonoma Inc (WSM). They placed a “Buy” rating on the company.
Rodman & Renshaw initiated coverage on Energy Recovery Inc. (ERII). They placed a “Market Perform” rating on the company.
Wells Fargo & Co. (NYSE:WFC) initiated coverage on Linear Technology Co. (LLTC). They placed an “Outperform” rating on the company.
Thursday, July 28, 2011
Anadarko (APC) (S) (VMED) (WFT) (UPS) (LLTC) Ratings Reiterated
Anadarko Petroleum (NYSE: APC), Sprint Nextel (NYSE: S), Virgin Media (NASDAQ: VMED), Weatherford (NYSE: WFT), United Parcel Service, Inc. (NYSE: UPS) and Linear Technology Co. (NASDAQ: LLTC) had ratings on them reiterated.
Scotia Capital reiterated its “Sector Perform” rating on Anadarko Petroleum (APC).
Collins Stewart reiterated its “Neutral” rating on Sprint Nextel (S). They have a price target of $5.00 on the company.
Citigroup (NYSE:C) reiterated its "Buy" rating on Virgin Media (VMED). They have a price target of $42.00 on the company.
Dahlman Rose reiterated its "Buy" rating on Weatherford (WFT).
Piper Jaffray (NYSE:PJC) reiterated an “Overweight” United Parcel Service, Inc. (UPS).
Jefferies (NYSE:JEF) reiterated its "Hold" rating on Linear Technology Co. (LLTC). They have a price target of $34.00 on the company.
Scotia Capital reiterated its “Sector Perform” rating on Anadarko Petroleum (APC).
Collins Stewart reiterated its “Neutral” rating on Sprint Nextel (S). They have a price target of $5.00 on the company.
Citigroup (NYSE:C) reiterated its "Buy" rating on Virgin Media (VMED). They have a price target of $42.00 on the company.
Dahlman Rose reiterated its "Buy" rating on Weatherford (WFT).
Piper Jaffray (NYSE:PJC) reiterated an “Overweight” United Parcel Service, Inc. (UPS).
Jefferies (NYSE:JEF) reiterated its "Hold" rating on Linear Technology Co. (LLTC). They have a price target of $34.00 on the company.
Friday, May 13, 2011
Ex-Dividend for (LLTC) (LMAT) (MAIN) (MAR) (MC) is May 18
The ex-dividend date for Linear Technology (NASDAQ:LLTC), LeMaitre Vascular Inc. (NASDAQ:LMAT), Main Street Capital Corporation (NYSE:MAIN), Marriott International Inc. (NYSE:MAR) and Moody's Corporation (NYSE:MC) is May 18.
Linear Technology (LLTC) pays a dividend of $0.24 with a yield of 2.76 percent.
LeMaitre Vascular Inc. (LMAT) pays a dividend of $0.02 with a yield of 1.16 percent.
Main Street Capital Corporation (MAIN) pays a dividend of $0.13 with a yield of 8.57 percent.
Marriott International Inc. (MAR) pays a dividend of $0.10 with a yield of 1.10 percent.
Moody's Corporation (MC) pays a dividend of $0.14 with a yield of 1.48 percent.
Linear Technology (LLTC) pays a dividend of $0.24 with a yield of 2.76 percent.
LeMaitre Vascular Inc. (LMAT) pays a dividend of $0.02 with a yield of 1.16 percent.
Main Street Capital Corporation (MAIN) pays a dividend of $0.13 with a yield of 8.57 percent.
Marriott International Inc. (MAR) pays a dividend of $0.10 with a yield of 1.10 percent.
Moody's Corporation (MC) pays a dividend of $0.14 with a yield of 1.48 percent.
Monday, May 2, 2011
Dividend Yields for (MCHP) (INTC) (LLTC) (KLAC) (ADI)
Indicated dividend yields for Standard & Poor's 500 Index companies Microchip Technology Inc (MCHP), Intel Corp (INTC), Linear Technology Corp (LLTC), KLA-Tencor Corp (KLAC) and Analog Devices Inc (ADI).
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
Microchip Technology Inc (MCHP) has a dividend yield of 3.36 percent on a declared dividend of $0.34. The payout ratio is 126.7 percent.
Intel Corp (INTC) has a dividend yield of 3.13 percent on a declared dividend of $0.18. The payout ratio is 27.5.
Linear Technology Corp (LLTC) has a dividend yield of 2.76 percent on a declared dividend of $0.24. The payout ratio is 39.2 percent.
KLA-Tencor Corp (KLAC) has a dividend yield of 2.28 percent on a declared dividend of $0.25. The payout ratio is 20.0 percent.
Analog Devices Inc (ADI) has a dividend yield of 2.18 percent on a declared dividend of $0.22. The payout ratio is 30.5 percent.
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
Microchip Technology Inc (MCHP) has a dividend yield of 3.36 percent on a declared dividend of $0.34. The payout ratio is 126.7 percent.
Intel Corp (INTC) has a dividend yield of 3.13 percent on a declared dividend of $0.18. The payout ratio is 27.5.
Linear Technology Corp (LLTC) has a dividend yield of 2.76 percent on a declared dividend of $0.24. The payout ratio is 39.2 percent.
KLA-Tencor Corp (KLAC) has a dividend yield of 2.28 percent on a declared dividend of $0.25. The payout ratio is 20.0 percent.
Analog Devices Inc (ADI) has a dividend yield of 2.18 percent on a declared dividend of $0.22. The payout ratio is 30.5 percent.
Friday, March 11, 2011
Buy (ADI) (TSM) (INTC) (LLTC) For Dividends?
Not too many investors think of dividends in relationship to tech stocks, but there are a few out there that give a decent return while still retaining growth.
Companies like Analog Devices (NYSE:ADI) and Linear Technologies (Nasdaq:LLTC) offer a dividend over 2 percent, while still generating returns in the double-digits.
Taiwan Semiconductor (NYSE:TSM) is another such company, which should enjoy growth for some time into the future.
Intel (Nasdaq:INTC) at this time has a current yield of close to 3.4%. While many believe Intel is doomed because of missing the initial surge in sales of of tablets and smartphones, we're really only at the beginning of that revolution, and there's a lot of time to adjust and grow there, assuming the devices really will last over the long run.
Analog Devices was trading at $37.98, up $0.06, or 0.16 percent, as of 2:14 PM EST. Taiwan Semiconductor was at $12.12. up $0.02, or 0.12 percent. Linear Technology was trading at $33.37, up $0.27, or 0.82 percent. Intel was at $20.84, gaining $0.05, or 0.26 percent.
Source
Companies like Analog Devices (NYSE:ADI) and Linear Technologies (Nasdaq:LLTC) offer a dividend over 2 percent, while still generating returns in the double-digits.
Taiwan Semiconductor (NYSE:TSM) is another such company, which should enjoy growth for some time into the future.
Intel (Nasdaq:INTC) at this time has a current yield of close to 3.4%. While many believe Intel is doomed because of missing the initial surge in sales of of tablets and smartphones, we're really only at the beginning of that revolution, and there's a lot of time to adjust and grow there, assuming the devices really will last over the long run.
Analog Devices was trading at $37.98, up $0.06, or 0.16 percent, as of 2:14 PM EST. Taiwan Semiconductor was at $12.12. up $0.02, or 0.12 percent. Linear Technology was trading at $33.37, up $0.27, or 0.82 percent. Intel was at $20.84, gaining $0.05, or 0.26 percent.
Source
Monday, March 7, 2011
Wells (WFC) Top Semi Picks are Intel (INTC), Qualcomm (QCOM), Linear Technology (LLTC), Analog Devices (ADI), Xilinx (XLNX), Altera (ALTR)
Even though Wells Fargo (NYSE:WFC) chip analyst David Wong downgraded his outlook on semiconductor stocks from "Overweight," he still likes Intel (INTC), Qualcomm (QCOM), Linear Technology (LLTC), Analog Devices (ADI), Xilinx (XLNX) and Altera (ALTR) in the sector.
Wong said, “We continue to expect solid semiconductor industry growth in 2011, of 10-15%, with many chip companies maintaining the high levels of profitability demonstrated in 2010.”
“The trend for worldwide semiconductor sales continues to track roughly in line with to somewhat above our expectations,” added Wong, who also said inventory levels are "appropriate" at this time.
Wong considers less desirable Broadcom (BRCM), Advanced Micro Devices (AMD), Microsemi (MSCC) and Micron Technology (MU), citing high valuations, low profit and company-specific risk.
Wong maintains Market Perform ratings on Maxim (MXIM), Texas Instruments (TXN) and National Semiconductor (NSM).
Wong said, “We continue to expect solid semiconductor industry growth in 2011, of 10-15%, with many chip companies maintaining the high levels of profitability demonstrated in 2010.”
“The trend for worldwide semiconductor sales continues to track roughly in line with to somewhat above our expectations,” added Wong, who also said inventory levels are "appropriate" at this time.
Wong considers less desirable Broadcom (BRCM), Advanced Micro Devices (AMD), Microsemi (MSCC) and Micron Technology (MU), citing high valuations, low profit and company-specific risk.
Wong maintains Market Perform ratings on Maxim (MXIM), Texas Instruments (TXN) and National Semiconductor (NSM).
Friday, January 21, 2011
ON Semi (NASDAQ:ONNN) Outlook Stronger on Auto Demand
Auto demand should allow ON Semi (NASDAQ:ONNN) better than Linear Tech (Nasdaq:LLTC), which gave soft guidance recently.
Canaccord says, "We are increasing our price target for On Sem ahead of what we believe will be a near-term rebound for automotive demand and a longer-term meaningful contribution to the bottom line by Sanyo. In our view, the stock has overreacted to weak guidance by Linear Tech (Nasdaq:LLTC), given Linear's soft outlook was exacerbated by the loss of a key tablet socket. Counter to Linear's comments, we are seeing some recovery for automotive semiconductor demand, a vertical where ONNN has atypically high exposure. We also believe investors will continue to warm to the Sanyo deal, as the extent of potential accretion by 2013 becomes more broadly understood.
"Q4/10E remains $575.0 million; C2010 remains $2.309 billion; C2011 remains $2.411 billion (excludes Sanyo acquisition)...Q4/10E remains $0.21; C2010 remains $0.87; C2011 remains $0.93."
Canaccord Genuity maintains a "Buy" rating on ON Semi (ONNN), which closed Thursday at $11.07, losing $0.15, or 1.34 percent. Canaccord increased their price target on 'ON Semi' from $10 to $13.
Canaccord says, "We are increasing our price target for On Sem ahead of what we believe will be a near-term rebound for automotive demand and a longer-term meaningful contribution to the bottom line by Sanyo. In our view, the stock has overreacted to weak guidance by Linear Tech (Nasdaq:LLTC), given Linear's soft outlook was exacerbated by the loss of a key tablet socket. Counter to Linear's comments, we are seeing some recovery for automotive semiconductor demand, a vertical where ONNN has atypically high exposure. We also believe investors will continue to warm to the Sanyo deal, as the extent of potential accretion by 2013 becomes more broadly understood.
"Q4/10E remains $575.0 million; C2010 remains $2.309 billion; C2011 remains $2.411 billion (excludes Sanyo acquisition)...Q4/10E remains $0.21; C2010 remains $0.87; C2011 remains $0.93."
Canaccord Genuity maintains a "Buy" rating on ON Semi (ONNN), which closed Thursday at $11.07, losing $0.15, or 1.34 percent. Canaccord increased their price target on 'ON Semi' from $10 to $13.
Linear Technology (NASDAQ:LLTC) Estimates Lowered by Barclays
Linear Technology (NASDAQ:LLTC) had their EPS estimates lowered by Barclays, which could affect sentiment for the overall analog sector.
Barclays says, "Estimates move lower; Could Impact Sentiment: We lower our estimates to $0.55 vs. $0.58 for Mar Q, CY11 to $2.25 from $2.34 prior & establish CY12 at $2.41. While iPad (Nasdaq:AAPL) appears to be the main reason and is Linear specific, we recognize lower guidance could adversely impact sentiment to the analog group notably those who had had longer lead times & some sell in sales recognition such as Texas Instruments (NYSE:TXN) and Maxim (Nasdaq:MXIM), both rated a EW. In the group, we prefer Analog Devices (NYSE:ADI) and Avago (Nasdaq:AVGO), both rated a OW."
Barclays reiterates an "Equalweight" on Linear Technology (LLTC), which closed Thursday at $34.88, gaining $0.32, or 0.93 percent. Barclays raised their price target on Linear from $33 to $35.
Barclays says, "Estimates move lower; Could Impact Sentiment: We lower our estimates to $0.55 vs. $0.58 for Mar Q, CY11 to $2.25 from $2.34 prior & establish CY12 at $2.41. While iPad (Nasdaq:AAPL) appears to be the main reason and is Linear specific, we recognize lower guidance could adversely impact sentiment to the analog group notably those who had had longer lead times & some sell in sales recognition such as Texas Instruments (NYSE:TXN) and Maxim (Nasdaq:MXIM), both rated a EW. In the group, we prefer Analog Devices (NYSE:ADI) and Avago (Nasdaq:AVGO), both rated a OW."
Barclays reiterates an "Equalweight" on Linear Technology (LLTC), which closed Thursday at $34.88, gaining $0.32, or 0.93 percent. Barclays raised their price target on Linear from $33 to $35.
Wednesday, January 19, 2011
Linear Technology (NASDAQ:LLTC) Too Pricey in Short Term
Linear Technology (NASDAQ:LLTC) has done a good job in sustaining their margins, but there are few, if any, catalysts in the short term to make them attractive to FBR.
FBR says, "Some bulls may point to long-term growth opportunities in industrial, automotive, and comm/networking, and industry-high margins. Bears may argue that the firm is already well run with few operational improvement initiatives, that margins are near a peak, and that the firm walks away from too much business (Apple (Nasdaq:AAPL), among others) so the firm may keep its margin structure intact. We find ourselves somewhere in the middle, apathetic on the stock given that Linear is not very inexpensive nor very growthy, and given our view that other chip stocks offer more upside returns (ON Semi (Nasdaq:ONNN), Maxim (Nasdaq:MXIM), Fairchild Semi (NYSE:FCS), Microsemi (Nasdaq:MSCC), Marvell (Nasdaq:MRVL)). We agree that further gross margin expansion opportunities are limited, with some Apple unwind a headwind in calendars 1Q11 and 2Q11. We thus prefer less-expensive chip stocks, product-cycle stocks, or fab-consolidation stocks. (FY11 EPS estimate lowered from $2.50 to $2.45)"
FBR Capital reiterates an "Underperform" rating on Linear Technology (LLTC), which was trading at $34.66, down $1.47, or 4.07 percent, as of 11:14 AM EST. FBR dropped their price target on Linear from $35 to $34.
FBR says, "Some bulls may point to long-term growth opportunities in industrial, automotive, and comm/networking, and industry-high margins. Bears may argue that the firm is already well run with few operational improvement initiatives, that margins are near a peak, and that the firm walks away from too much business (Apple (Nasdaq:AAPL), among others) so the firm may keep its margin structure intact. We find ourselves somewhere in the middle, apathetic on the stock given that Linear is not very inexpensive nor very growthy, and given our view that other chip stocks offer more upside returns (ON Semi (Nasdaq:ONNN), Maxim (Nasdaq:MXIM), Fairchild Semi (NYSE:FCS), Microsemi (Nasdaq:MSCC), Marvell (Nasdaq:MRVL)). We agree that further gross margin expansion opportunities are limited, with some Apple unwind a headwind in calendars 1Q11 and 2Q11. We thus prefer less-expensive chip stocks, product-cycle stocks, or fab-consolidation stocks. (FY11 EPS estimate lowered from $2.50 to $2.45)"
FBR Capital reiterates an "Underperform" rating on Linear Technology (LLTC), which was trading at $34.66, down $1.47, or 4.07 percent, as of 11:14 AM EST. FBR dropped their price target on Linear from $35 to $34.
Thursday, January 13, 2011
Gleacher Likes Linear Tech (Nasdaq:LLTC) Maxim (Nasdaq:MXIM) Long- Term in Analog, Monlithic Power (Nasdaq:MPWR) Short Term
Previewing the ending of the quarter for analog, Gleacher said they like Linear Tech (Nasdaq:LLTC) Maxim (Nasdaq:MXIM), and in the short term, Monlithic Power (Nasdaq:MPWR).
Gleacher noted, "Today we are previewing our December quarter ending Analog coverage group including Texas Instruments (NYSE:TXN) (Buy), Intersil (Nasdaq:ISIL) (Neutral), Linear Tech (LLTC) (Buy), Monlithic Power (MPWR) (Neutral), Micrel (Nasdaq:MCRL) (Neutral) and Maxim (MXIM) (Buy). While our top picks longer-term are LLTC and MXIM, we recognize that MPWR perhaps has greater upside potential through Q4 earnings, should the company post beat and raise results (as we suspect), as Street CY11 estimates have fallen precipitously since CQ3 earnings. Note: We also recommend National Semi (NYSE:NSM) and Analog Devices (NYSE:ADI) in the Analog space."
LLTC was trading at $34.90, up $0.09, or 0.25 percent, as of 2:19 PM EST. MXIM was trading at $25.75, up $0.38, or 1.50 percent. MPWR was at $15.98, down $0.05, or 0.31 percent.
Gleacher noted, "Today we are previewing our December quarter ending Analog coverage group including Texas Instruments (NYSE:TXN) (Buy), Intersil (Nasdaq:ISIL) (Neutral), Linear Tech (LLTC) (Buy), Monlithic Power (MPWR) (Neutral), Micrel (Nasdaq:MCRL) (Neutral) and Maxim (MXIM) (Buy). While our top picks longer-term are LLTC and MXIM, we recognize that MPWR perhaps has greater upside potential through Q4 earnings, should the company post beat and raise results (as we suspect), as Street CY11 estimates have fallen precipitously since CQ3 earnings. Note: We also recommend National Semi (NYSE:NSM) and Analog Devices (NYSE:ADI) in the Analog space."
LLTC was trading at $34.90, up $0.09, or 0.25 percent, as of 2:19 PM EST. MXIM was trading at $25.75, up $0.38, or 1.50 percent. MPWR was at $15.98, down $0.05, or 0.31 percent.
Wednesday, January 5, 2011
National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM), Marvell (Nasdaq:MRVL) May be Defensive in Short Term
In the short term FBR Capital says tehy are nervous over the vertical price action even though the sector looks somewhat healthy. Companies they see on the defensive are National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM) and Marvell (Nasdaq:MRVL).
FBR said, "We remain constructive on the chip sector for 2011 and think that semiconductor stocks can appreciate higher over the course of the year, given (1) robust end demand for smartphones, tablets, infrastructure equipment, and industrial/automotive applications; (2) higher chip content per device in handsets, automobiles, and others; (3) still-reasonable channel inventories; (4) still-limited capacity growth, and (5) reasonably high earnings power. That said, chip stocks have had a powerful move higher since Labor Day and, thus, could be subject to profit taking, a pullback, or, at the very least, some digesting to start the year. While we continue to believe 2010–2011 is the sector's first-ever "soft landing," we do see some revenue- and EPS-related "ship ahead" risks still for chip firms, particularly in the industrial and communications/networking sectors, and expect some misses from chip firms in these sectors in 1H11, though the magnitude of these resets should be modest. Sector valuations are now appropriate but not downright attractive anymore, given the group's move higher. That said, the one risk to protecting profits is investors' recent actions to reallocate funds from bonds to equities, potentially making any action to protect profits too early. Stocks that could be defensive in the near term include National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM), and Marvell (Nasdaq:MRVL). Stocks that may have moved upwards too far too fast, near term, include Linear (Nasdaq:LLTC), Silicon Labs (Nasdaq:SLAB), Atmel (Nasdaq:ATML) and, possibly, Fairchild (NYSE:FCS). For 2011 in aggregate, we still see material upside in Outperform-rated stocks such as QUALCOMM (Nasdaq:QCOM), BRCM, Atheros (Nasdaq:ATHR), LSI Corp (NYSE:LSI), NSM, On Semi (Nasdaq:ONNN), FCS, and Microsemi (Nasdaq:MSCC)."
National Semiconductor closed Tuesday at $13.85, down $0.04, or 0.29 percent. Intel closed at $21.15, gaining $0.30, or 1.44 percent. AMD closed at $8.77, up $0.30, or 3.54 percent. Broadcom closed at $43.19, losing $1.04, or 2.36 percent. Marvell closed at $18.12, down $0.42, or 2.26 percent.
FBR said, "We remain constructive on the chip sector for 2011 and think that semiconductor stocks can appreciate higher over the course of the year, given (1) robust end demand for smartphones, tablets, infrastructure equipment, and industrial/automotive applications; (2) higher chip content per device in handsets, automobiles, and others; (3) still-reasonable channel inventories; (4) still-limited capacity growth, and (5) reasonably high earnings power. That said, chip stocks have had a powerful move higher since Labor Day and, thus, could be subject to profit taking, a pullback, or, at the very least, some digesting to start the year. While we continue to believe 2010–2011 is the sector's first-ever "soft landing," we do see some revenue- and EPS-related "ship ahead" risks still for chip firms, particularly in the industrial and communications/networking sectors, and expect some misses from chip firms in these sectors in 1H11, though the magnitude of these resets should be modest. Sector valuations are now appropriate but not downright attractive anymore, given the group's move higher. That said, the one risk to protecting profits is investors' recent actions to reallocate funds from bonds to equities, potentially making any action to protect profits too early. Stocks that could be defensive in the near term include National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM), and Marvell (Nasdaq:MRVL). Stocks that may have moved upwards too far too fast, near term, include Linear (Nasdaq:LLTC), Silicon Labs (Nasdaq:SLAB), Atmel (Nasdaq:ATML) and, possibly, Fairchild (NYSE:FCS). For 2011 in aggregate, we still see material upside in Outperform-rated stocks such as QUALCOMM (Nasdaq:QCOM), BRCM, Atheros (Nasdaq:ATHR), LSI Corp (NYSE:LSI), NSM, On Semi (Nasdaq:ONNN), FCS, and Microsemi (Nasdaq:MSCC)."
National Semiconductor closed Tuesday at $13.85, down $0.04, or 0.29 percent. Intel closed at $21.15, gaining $0.30, or 1.44 percent. AMD closed at $8.77, up $0.30, or 3.54 percent. Broadcom closed at $43.19, losing $1.04, or 2.36 percent. Marvell closed at $18.12, down $0.42, or 2.26 percent.
Tuesday, December 14, 2010
Apple (Nasdaq:AAPL) Cuts iPad, iPhone Production in 1st Quarter
Citing their contacts, FBR Capital said they're seeing Apple (Nasdaq:AAPL) cutting production for its iPhones and iPads for the first quarter 2011, based on checks as of November 23.
FBR said, "We have an interim update into the Apple (Nasdaq:AAPL) supply chain with implications for Broadcom (Nasdaq:BRCM) (OP), QUALCOMM (Nasdaq:QCOM) (OP), and Linear Technology (Nasdaq:LLTC) (UP). In short, our contacts saw calendar 1Q'11 production cuts for both iPhones and iPads versus our November 23 checks. For the iPhone, 1Q'11 production is now set at 16.1M units, a 4% negative revision versus our prior checks, but still up 7% QOQ. We hear some iPad cannibalization impacts could be driving the build reduction, as well as some customers (especially 3GS customers) choosing to wait until the new iPhone 5 is launched this summer. Strong end demand is still driving sequential growth in 1Q iPhone production, completely bucking normal seasonality. For the iPad, we believe 1Q'11 production is now set at 6.0M units, a 30% negative revision versus our prior checks, and now down 21% QOQ. We hear Apple will clear out iPad inventory to make way for the iPad 2, with initial production beginning in 1Q'11. For the iPhone and iPad, strong sell-through could drive the 1Q'11 production forecasts higher from here. For the sector, chip stocks have had a powerful move higher since September 1 and, while the rally could continue through CES in early January, we think some investors could take profits in the near term. Indeed, we continue to think the sector is not totally out of the woods yet, regarding previously discussed ship-ahead risks, as downstream supply chain participants no longer replenish inventories and could de-stock. In our 3Q10 inventory analysis (published 11/17/10), we specifically called out inventory dollar growth at distributors (+24% QOQ) and EMS firms (+12% QOQ) as the worst offenders. We remain constructive on chips for 2011, given very robust end-demand trends, still low capacity, and high earnings power, though we think chip stocks could digest gains early in the year as some choppiness creeps into estimates. Defensive chip stocks currently include National Semi (NYSE:NSM),Intel (Nasdaq:INTC), Microsemi (Nasdaq:MSCC), and QCOM (given a robust Apple ramp likely in 1H11)."
Apple closed Monday at $321.67, up $1.11, or 0.35 percent.
FBR said, "We have an interim update into the Apple (Nasdaq:AAPL) supply chain with implications for Broadcom (Nasdaq:BRCM) (OP), QUALCOMM (Nasdaq:QCOM) (OP), and Linear Technology (Nasdaq:LLTC) (UP). In short, our contacts saw calendar 1Q'11 production cuts for both iPhones and iPads versus our November 23 checks. For the iPhone, 1Q'11 production is now set at 16.1M units, a 4% negative revision versus our prior checks, but still up 7% QOQ. We hear some iPad cannibalization impacts could be driving the build reduction, as well as some customers (especially 3GS customers) choosing to wait until the new iPhone 5 is launched this summer. Strong end demand is still driving sequential growth in 1Q iPhone production, completely bucking normal seasonality. For the iPad, we believe 1Q'11 production is now set at 6.0M units, a 30% negative revision versus our prior checks, and now down 21% QOQ. We hear Apple will clear out iPad inventory to make way for the iPad 2, with initial production beginning in 1Q'11. For the iPhone and iPad, strong sell-through could drive the 1Q'11 production forecasts higher from here. For the sector, chip stocks have had a powerful move higher since September 1 and, while the rally could continue through CES in early January, we think some investors could take profits in the near term. Indeed, we continue to think the sector is not totally out of the woods yet, regarding previously discussed ship-ahead risks, as downstream supply chain participants no longer replenish inventories and could de-stock. In our 3Q10 inventory analysis (published 11/17/10), we specifically called out inventory dollar growth at distributors (+24% QOQ) and EMS firms (+12% QOQ) as the worst offenders. We remain constructive on chips for 2011, given very robust end-demand trends, still low capacity, and high earnings power, though we think chip stocks could digest gains early in the year as some choppiness creeps into estimates. Defensive chip stocks currently include National Semi (NYSE:NSM),Intel (Nasdaq:INTC), Microsemi (Nasdaq:MSCC), and QCOM (given a robust Apple ramp likely in 1H11)."
Apple closed Monday at $321.67, up $1.11, or 0.35 percent.
Friday, November 26, 2010
Trading Tips on Apple (Nasdaq:AAPL), Broadcom (Nasdaq:BRCM), QUALCOMM (Nasdaq:QCOM), Linear (Nasdaq:LLTC)
Apple (Nasdaq:AAPL) Broadcom (Nasdaq:BRCM) QUALCOMM (Nasdaq:QCOM) Linear Technology (Nasdaq:LLTC) were the recipients of a quick overview from FBR Capital.
Here's what FBR had to say about them all:
"We have updated checks into the Apple supply chain that we discuss below, as well as implications for covered stocks Broadcom, QUALCOMM, and Linear Technology. In short, 4Q supply and production constraints are limiting upside, pushing some of that production into calendar 1Q'11, thus dampening both 4Q'10 upside and 1Q'11 seasonal downside (actually, we expect this year 1Q'11 production will grow for both iPhones and iPads!).
"For Broadcom, the firm's revenues should benefit by roughly one point sequentially in both 4Q'10 and 1Q'11 due to increased iPhone and iPad builds. Despite this, we wonder if a lack of 4Q production upside will limit upside to Broadcom's stock near-term.
"For Qualcomm, our contacts continue to believe that Qualcomm will likely replace Intel (Nasdaq:INTC)/Infineon's (NYSE:IFX) baseband solution beginning in mid-2011 with an integrated CDMA/WCDMA baseband solution that will allow Apple to address more carriers without changing the phone's hardware specifications. Qualcomm's annual EPS could benefit by as much as $0.35 if it supplies into all iPhones and iPads.
"Finally, for Linear Technology, we are somewhat concerned that the firm could cease participating in the iPad beginning in early- to mid-2011, though we do not have any firm evidence of this in hand, nor have our contacts been able to confirm this. We simply note that given Linear's roughly 50% operating margins, Apple may not want to spend $100M on a DC/DC converter and another power management chip for the iPad in 2011 (40M units at $2-$3 of content each). Given that Linear should see roughly $20M of revenue contribution from the iPad in both calendar 4Q'10 and 1Q'11, or roughly 6% of revenues, and given that the automotive and industrial sectors are likely shipping chips at above end-consumption rates, we think some near-term risks exist for shares of LLTC."
Apple closed Wednesday at $314.80, gaining $6.07, or 1.96 percent. Broadcom closed at $45.25, increasing by $1.32, or 3.01 percent. Qualcomm ended the trading day on Wednesday at $48.07, rising by $0.97, or 2.06 percent. Linear Technology closed Wednesday at $33.71, gaining $0.76, or 2.34 percent.
Here's what FBR had to say about them all:
"We have updated checks into the Apple supply chain that we discuss below, as well as implications for covered stocks Broadcom, QUALCOMM, and Linear Technology. In short, 4Q supply and production constraints are limiting upside, pushing some of that production into calendar 1Q'11, thus dampening both 4Q'10 upside and 1Q'11 seasonal downside (actually, we expect this year 1Q'11 production will grow for both iPhones and iPads!).
"For Broadcom, the firm's revenues should benefit by roughly one point sequentially in both 4Q'10 and 1Q'11 due to increased iPhone and iPad builds. Despite this, we wonder if a lack of 4Q production upside will limit upside to Broadcom's stock near-term.
"For Qualcomm, our contacts continue to believe that Qualcomm will likely replace Intel (Nasdaq:INTC)/Infineon's (NYSE:IFX) baseband solution beginning in mid-2011 with an integrated CDMA/WCDMA baseband solution that will allow Apple to address more carriers without changing the phone's hardware specifications. Qualcomm's annual EPS could benefit by as much as $0.35 if it supplies into all iPhones and iPads.
"Finally, for Linear Technology, we are somewhat concerned that the firm could cease participating in the iPad beginning in early- to mid-2011, though we do not have any firm evidence of this in hand, nor have our contacts been able to confirm this. We simply note that given Linear's roughly 50% operating margins, Apple may not want to spend $100M on a DC/DC converter and another power management chip for the iPad in 2011 (40M units at $2-$3 of content each). Given that Linear should see roughly $20M of revenue contribution from the iPad in both calendar 4Q'10 and 1Q'11, or roughly 6% of revenues, and given that the automotive and industrial sectors are likely shipping chips at above end-consumption rates, we think some near-term risks exist for shares of LLTC."
Apple closed Wednesday at $314.80, gaining $6.07, or 1.96 percent. Broadcom closed at $45.25, increasing by $1.32, or 3.01 percent. Qualcomm ended the trading day on Wednesday at $48.07, rising by $0.97, or 2.06 percent. Linear Technology closed Wednesday at $33.71, gaining $0.76, or 2.34 percent.
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