Maxim Integrated Products Inc. (NASDAQ: MXIM), Ball (NYSE: BLL), Crown Cork & Seal (NYSE: CCK), Lam Research (NASDAQ: LRCX), Alexion Pharmaceuticals (NASDAQ: ALXN) and Progress Energy (NYSE: PGN) ratings and price targets.
Maxim Integrated Products (MXIM) had its “Buy” rating reiterated by Nomura (NYSE:NMR).
Wells Fargo & Co. (NYSE:WFC) initiated coverage on Ball (BLL). They placed an “Outperform” rating on the company.
Wells Fargo & Co. initiated coverage on Crown Cork & Seal (CCK). They placed an “Outperform” rating on the company.
Lam Research (LRCX) had its price target raised by Citigroup (NYSE:C) from $48.00 to $64.00.
Alexion Pharmaceuticals (ALXN) had its price target raised by Oppenheimer (NYSE:OPY) from $75.00 to $84.00. They have an "Outperform” rating on the company.
Progress Energy (PGN) had its price target raised by Wunderlich from $47.00 to $56.00. They have a “Hold” rating on the company.
Showing posts with label Maxim. Show all posts
Showing posts with label Maxim. Show all posts
Wednesday, January 25, 2012
Monday, November 21, 2011
Maxim (MXIM) (PANL) (PEGA) (GTAT) (HLF) (HNT) Get New Coverage
Maxim Integrated Products Inc. (NASDAQ: MXIM), Universal Display Co. (NASDAQ: PANL), Pegasystems Inc. (NASDAQ: PEGA), GT Advanced Technologies, Inc. (NASDAQ: GTAT), Herbalife Ltd. (NYSE: HLF) and Health Net Inc. (NYSE: HNT) getting new coverage from analysts.
Cantor Fitzgerald initiated coverage on Maxim Integrated Products Inc. (MXIM). They placed a “Buy” rating on the company.
Goldman Sachs (NYSE:GS) initiated coverage on Universal Display Co. (PANL). They placed a “Buy” rating on the company.
Benchmark Co. initiated coverage on Pegasystems Inc. (PEGA). They placed a “Buy” rating and a price target of $37.00 on the company.
Canaccord Genuity initiated coverage on GT Advanced Technologies, Inc. (GTAT). They placed a “Hold” rating and a price target of $9.00 on the company.
Auriga initiated coverage on Herbalife Ltd. (HLF). They placed a “Hold” rating and a price target of $50.00 on the company.
Susquehanna initiated coverage on Health Net Inc. (HNT). They placed a “Neutral” rating on the company.
Cantor Fitzgerald initiated coverage on Maxim Integrated Products Inc. (MXIM). They placed a “Buy” rating on the company.
Goldman Sachs (NYSE:GS) initiated coverage on Universal Display Co. (PANL). They placed a “Buy” rating on the company.
Benchmark Co. initiated coverage on Pegasystems Inc. (PEGA). They placed a “Buy” rating and a price target of $37.00 on the company.
Canaccord Genuity initiated coverage on GT Advanced Technologies, Inc. (GTAT). They placed a “Hold” rating and a price target of $9.00 on the company.
Auriga initiated coverage on Herbalife Ltd. (HLF). They placed a “Hold” rating and a price target of $50.00 on the company.
Susquehanna initiated coverage on Health Net Inc. (HNT). They placed a “Neutral” rating on the company.
Friday, November 18, 2011
Enerplus (ERF) (MXIM) (NLY) (NWY) (ESE) (EXC) Ratings, Price Targets
Enerplus Resources Fund (ERF), Maxim Integrated Products Inc. (MXIM), Annaly Capital Management, Inc. (NLY), New York & Company, Inc. (NWY), ESCO Technologies Inc. (ESE) and Exelon Co. (EXC) ratings and price targets.
Barclays Capital initiated coverage on Enerplus Resources Fund (ERF). They placed an “Underweight” rating on the company.
Cantor Fitzgerald initiated coverage on Maxim Integrated Products Inc. (MXIM). They placed a “Buy” rating on the company.
Keefe, Bruyette & Woods, Inc. downgraded Annaly Capital Management, Inc. (NLY) from an “Outperform” rating to a “Market Perform” rating.
Brean Murray lowered its price target on New York & Company, Inc. (NWY) from $5.50 to $3.50. They have a “Buy” rating on the company.
BB&T downgraded ESCO Technologies Inc. (ESE) from a “Buy” rating to a “Hold” rating.
Wunderlich raised its price target on Exelon Co. (EXC) to $48.00.
Barclays Capital initiated coverage on Enerplus Resources Fund (ERF). They placed an “Underweight” rating on the company.
Cantor Fitzgerald initiated coverage on Maxim Integrated Products Inc. (MXIM). They placed a “Buy” rating on the company.
Keefe, Bruyette & Woods, Inc. downgraded Annaly Capital Management, Inc. (NLY) from an “Outperform” rating to a “Market Perform” rating.
Brean Murray lowered its price target on New York & Company, Inc. (NWY) from $5.50 to $3.50. They have a “Buy” rating on the company.
BB&T downgraded ESCO Technologies Inc. (ESE) from a “Buy” rating to a “Hold” rating.
Wunderlich raised its price target on Exelon Co. (EXC) to $48.00.
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
Maxim (NASDAQ:MXIM) Surges on Strong Guidance
Maxim's (NASDAQ:MXIM) latest quarter was inline with analysts' expectations, although their guidance was a nice surprise, as it was strong for the third quarter of 2011.
Auriga said that "days of inventory was up 8 days to 89 days, book-to-bill is below 1.0, channel inventory was up 5 days to 59 days, deferred income has risen significantly over the past two quarters, and lead times are steadily shrinking."
Auriga raised their full year 2011 and full year 2012 EPS/revenue estimates from $1.46/$2.3 billion and $1.43/$2.3 billion to $1.59/$2.4B and $1.52/$2.3 billion.
They maintain their "Hold" rating on Maxim, which was trading at $26.83, gaining $1.23, or 4.80 percent, as of 12:30 PM EST. Auriga raised their price target on Maxim from $19 to $23.
Auriga said that "days of inventory was up 8 days to 89 days, book-to-bill is below 1.0, channel inventory was up 5 days to 59 days, deferred income has risen significantly over the past two quarters, and lead times are steadily shrinking."
Auriga raised their full year 2011 and full year 2012 EPS/revenue estimates from $1.46/$2.3 billion and $1.43/$2.3 billion to $1.59/$2.4B and $1.52/$2.3 billion.
They maintain their "Hold" rating on Maxim, which was trading at $26.83, gaining $1.23, or 4.80 percent, as of 12:30 PM EST. Auriga raised their price target on Maxim from $19 to $23.
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.
Maxim (Nasdaq:MXIM), Marvell (Nasdaq:MRVL), ONNN (Nasdaq:ONNN), National Semi (NYSE:NSM), Fairchild (NYSE:FCS), Int'l Rectifier (NYSE:IRF), Microsemi (Nasdaq:MSCC), Broadcom (Nasdaq:BRCM) Have Most Semi Upside
With earnings reports from a number of semiconductor companies to be released next week, FBR focused on a number of companies in the sector, saying Maxim (Nasdaq:MXIM), Marvell (Nasdaq:MRVL), ON Semiconductor (Nasdaq:ONNN), National Semi (NYSE:NSM), Fairchild (NYSE:FCS), Int'l Rectifier (NYSE:IRF), Microsemi (Nasdaq:MSCC) and Broadcom (Nasdaq:BRCM) have the most upside potential of the group.
FBR says, "Several chip firms report earnings over the next week, including Linear Technology (Nasdaq:LLTC)(UP) Tuesday AMC, Fairchild Semi (FCS)(OP), Thursday BMO, Maxim Integrated (MXIM)(OP) Thursday AMC, AMD (NYSE: AMD)(MP) Thursday AMC, and Texas Instruments (NYSE: TXN)(OP) Monday AMC. For near-term focused investors, we think FCS and MXIM could see solid share price appreciation following beat and raise results, with TXN also possibly in that camp (though our conviction is slightly lower). While both MXIM and FCS have appreciated meaningfully in the near term, robust results and still-attractive stock valuations keep us favorable near term. For AMD, while the firm could post solid 1Q11 guidance, the departure of former CEO Dirk Meyer is likely to weigh on the stock and overshadow any near-term results until a full-time successor is found. For Linear, we think the firm's core business remains solid; however, several headwinds are present in the March quarter, including (1) a possible loss of one of its two iPad sockets (we estimate content going from $2 to $1) and some iPad seasonality in March, driving a roughly $10M revenue headwind in total (three revenue points), and (2) tougher comparisons against the firm's 14-week December quarter (about four revenue points). For Texas Instruments, we think the firm will report robust results and guidance, and the stock could possibly rally, though we prefer MXIM (growth) or NSM (value) versus TXN currently. Finally, for ON Semi (ONNN–OP), we are raising our 4Q10 revenue and EPS estimates slightly toward the high end of guidance, embedding Sanyo into our financial estimates, and raising our price target from $15 to $16."
"While the group could see some profit-taking following such a move higher, we do expect some beat and raise 4Q10 results and thus think any sell-off will be short term in nature and a likely buying opportunity for later in 2011. Our favorite stocks for upside include Maxim (Nasdaq: MXIM), Marvell (MRVL), ONNN, National Semi (NSM), Fairchild (FCS), Int'l Rectifier (IRF), Microsemi (MSCC), and Broadcom (BRCM)."
FBR says, "Several chip firms report earnings over the next week, including Linear Technology (Nasdaq:LLTC)(UP) Tuesday AMC, Fairchild Semi (FCS)(OP), Thursday BMO, Maxim Integrated (MXIM)(OP) Thursday AMC, AMD (NYSE: AMD)(MP) Thursday AMC, and Texas Instruments (NYSE: TXN)(OP) Monday AMC. For near-term focused investors, we think FCS and MXIM could see solid share price appreciation following beat and raise results, with TXN also possibly in that camp (though our conviction is slightly lower). While both MXIM and FCS have appreciated meaningfully in the near term, robust results and still-attractive stock valuations keep us favorable near term. For AMD, while the firm could post solid 1Q11 guidance, the departure of former CEO Dirk Meyer is likely to weigh on the stock and overshadow any near-term results until a full-time successor is found. For Linear, we think the firm's core business remains solid; however, several headwinds are present in the March quarter, including (1) a possible loss of one of its two iPad sockets (we estimate content going from $2 to $1) and some iPad seasonality in March, driving a roughly $10M revenue headwind in total (three revenue points), and (2) tougher comparisons against the firm's 14-week December quarter (about four revenue points). For Texas Instruments, we think the firm will report robust results and guidance, and the stock could possibly rally, though we prefer MXIM (growth) or NSM (value) versus TXN currently. Finally, for ON Semi (ONNN–OP), we are raising our 4Q10 revenue and EPS estimates slightly toward the high end of guidance, embedding Sanyo into our financial estimates, and raising our price target from $15 to $16."
"While the group could see some profit-taking following such a move higher, we do expect some beat and raise 4Q10 results and thus think any sell-off will be short term in nature and a likely buying opportunity for later in 2011. Our favorite stocks for upside include Maxim (Nasdaq: MXIM), Marvell (MRVL), ONNN, National Semi (NSM), Fairchild (FCS), Int'l Rectifier (IRF), Microsemi (MSCC), and Broadcom (BRCM)."
Maxim Integrated Products (NASDAQ:MXIM) Catalysts Compelling for 2011
In spite of a slow down in industrial bookings for, UBS (NYSE:UBS) says there are several catalysts for Maxim Integrated Products (NASDAQ:MXIM) should drive growth in 2011 and onward.
UBS says, "Following our meeting with management at recent CES, we reiterate Buy & raise PT to $29 for following reasons: 1) resilience in underlying revenue growth in industrial despite recent slow down in bookings; 2) continued strong traction in tablets with more than 45 design wins & smart phones where business at Nokia is still at a nascent but growing stage, & 3) potential entry in touch device market with a 10 finger touch controller presents opportunity for future growth.
"We raise F2Q (Dec ’10) Rev/EPS to $621m/$0.44 (cons $607m/$0.41) from, $615m/$0.40. For FY2011, we raise Rev/EPS to $2,502m/$1.76 (cons $2,423m/$1.59) from $2,481m/$1.71 and f.or FY2012 to $2,671m/$2.03 (cons $2,523m/$1.70) from $2,639m/$1.92."
UBS maintains a "Buy" rating on Maxim Integrated Products (MXIM), which closed Tuesday at $26.31, gaining $0.32, or 1.23 percent. UBS boosted their price target on Maxim from $25 to $29.
UBS says, "Following our meeting with management at recent CES, we reiterate Buy & raise PT to $29 for following reasons: 1) resilience in underlying revenue growth in industrial despite recent slow down in bookings; 2) continued strong traction in tablets with more than 45 design wins & smart phones where business at Nokia is still at a nascent but growing stage, & 3) potential entry in touch device market with a 10 finger touch controller presents opportunity for future growth.
"We raise F2Q (Dec ’10) Rev/EPS to $621m/$0.44 (cons $607m/$0.41) from, $615m/$0.40. For FY2011, we raise Rev/EPS to $2,502m/$1.76 (cons $2,423m/$1.59) from $2,481m/$1.71 and f.or FY2012 to $2,671m/$2.03 (cons $2,523m/$1.70) from $2,639m/$1.92."
UBS maintains a "Buy" rating on Maxim Integrated Products (MXIM), which closed Tuesday at $26.31, gaining $0.32, or 1.23 percent. UBS boosted their price target on Maxim from $25 to $29.
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.
Maxim (Nasdaq:MXIM), ON Semi (Nasdaq:ONNN), Marvell (Nasdaq:MRVL), Broadcom (Nasdaq:BRCM), National (NYSE:NSM), Fairchild (NYSE:FCS), Intl Rectifier (NYSE:IRF), Microsemi (Nasdaq:MSCC) Have Best Potential Upside Says FBR
Commenting on the semiconductor sector, FBR said the companies with the most potential upside in their view are Maxim (Nasdaq:MXIM), ON Semi (Nasdaq:ONNN), Marvell (Nasdaq:MRVL), Broadcom (Nasdaq:BRCM), National (NYSE:NSM), Fairchild (NYSE:FCS), Intl Rectifier (NYSE:IRF) and Microsemi (Nasdaq:MSCC)
FBR said, "Here we discuss Maxim Integrated (Nasdaq: MXIM)(Outperform) and our latest 1Q11 production start checks. Regarding Maxim, the firm has seen meaningful success ramping analog baseband chips into CDMA phones from Samsung and LG, phones usually powered by Qualcomm baseband chips. With Apple's new CDMA-based iPhone about to launch, we cannot help but wonder if the innards of this device are similar to the innards of other CDMA-based handsets that often contain Maxim analog baseband chips. While we have not confirmed anything in this regard, it is possible Maxim's chips could be found inside the CDMA-based iPhone, instead of the power management unit currently designed in from Dialog. If 20M CDMA-based iPhones are built in 2011 with an analog baseband content of $2, then $40M of incremental revenues would be generated, contributing about $0.04 of annual EPS, a positive. Separately, we detail our updated production start checks, which were largely stable versus our prior month checks in aggregate, with production forecast improvements by Nvidia (Nasdaq: NVDA), Marvell (Nasdaq: MRVL), and Broadcom (Nasdaq: BRCM) largely offsetting production forecast cuts from Qualcomm (Nasdaq: QCOM), Texas Instruments (NYSE: TXN), Altera (Nasdaq: ALTR), and Atheros (Nasdaq: ATHR). Regarding chip stocks, while playing some defense may make sense following a big run higher since Labor Day, and given that CES has historically marked a peak in both chip stock prices and sentiment, we do think a "beat and raise" round of 4Q earnings results, improving economic (jobs and manufacturing) data, an inflow of cash from bonds to equities, and still-reasonable chip firm valuations (14x 2011 P/E for sector) may mean that any sell-off is short term in nature and a likely buying opportunity. Chip stocks remain cheap compared with software stocks, and compared with the overall market, especially in light of robust demand trends and structural growth opportunities. We think the SOX can grind higher toward 475–500 by year-end 2011. Stocks to focus on for potential upside include Maxim (Nasdaq: MXIM), ON Semi (Nasdaq: ONNN), MRVL, BRCM, National Semi (NYSE: NSM), Fairchild Semi (NYSE: FCS), Intl Rectifier (NYSE: IRF), and Microsemi (Nasdaq: MSCC)."
FBR added these points: 1) Maxim could win a power management socket in the new CDMA-based iPhone (though nothing is confirmed); possible $0.04 annual EPS impact; 2) 1Q production start checks largely stable and better than seasonal at flat QOQ; raises by NVDA, MRVL, and BRCM offset by cuts from QCOM, TXN, ALTR, and ATHR; 3) Commentary for firms that increased production forecasts; 4) Commentary for firms that decreased production forecasts; 5) Shares of Intel (Nasdaq: INTC) widely disliked—a potential opportunity, if Sandybridge ramp is robust.
FBR said, "Here we discuss Maxim Integrated (Nasdaq: MXIM)(Outperform) and our latest 1Q11 production start checks. Regarding Maxim, the firm has seen meaningful success ramping analog baseband chips into CDMA phones from Samsung and LG, phones usually powered by Qualcomm baseband chips. With Apple's new CDMA-based iPhone about to launch, we cannot help but wonder if the innards of this device are similar to the innards of other CDMA-based handsets that often contain Maxim analog baseband chips. While we have not confirmed anything in this regard, it is possible Maxim's chips could be found inside the CDMA-based iPhone, instead of the power management unit currently designed in from Dialog. If 20M CDMA-based iPhones are built in 2011 with an analog baseband content of $2, then $40M of incremental revenues would be generated, contributing about $0.04 of annual EPS, a positive. Separately, we detail our updated production start checks, which were largely stable versus our prior month checks in aggregate, with production forecast improvements by Nvidia (Nasdaq: NVDA), Marvell (Nasdaq: MRVL), and Broadcom (Nasdaq: BRCM) largely offsetting production forecast cuts from Qualcomm (Nasdaq: QCOM), Texas Instruments (NYSE: TXN), Altera (Nasdaq: ALTR), and Atheros (Nasdaq: ATHR). Regarding chip stocks, while playing some defense may make sense following a big run higher since Labor Day, and given that CES has historically marked a peak in both chip stock prices and sentiment, we do think a "beat and raise" round of 4Q earnings results, improving economic (jobs and manufacturing) data, an inflow of cash from bonds to equities, and still-reasonable chip firm valuations (14x 2011 P/E for sector) may mean that any sell-off is short term in nature and a likely buying opportunity. Chip stocks remain cheap compared with software stocks, and compared with the overall market, especially in light of robust demand trends and structural growth opportunities. We think the SOX can grind higher toward 475–500 by year-end 2011. Stocks to focus on for potential upside include Maxim (Nasdaq: MXIM), ON Semi (Nasdaq: ONNN), MRVL, BRCM, National Semi (NYSE: NSM), Fairchild Semi (NYSE: FCS), Intl Rectifier (NYSE: IRF), and Microsemi (Nasdaq: MSCC)."
FBR added these points: 1) Maxim could win a power management socket in the new CDMA-based iPhone (though nothing is confirmed); possible $0.04 annual EPS impact; 2) 1Q production start checks largely stable and better than seasonal at flat QOQ; raises by NVDA, MRVL, and BRCM offset by cuts from QCOM, TXN, ALTR, and ATHR; 3) Commentary for firms that increased production forecasts; 4) Commentary for firms that decreased production forecasts; 5) Shares of Intel (Nasdaq: INTC) widely disliked—a potential opportunity, if Sandybridge ramp is robust.
Monday, January 10, 2011
Atmel (Nasdaq:ATML), Broadcom (Nasdaq:BRCM), Int'l Rectifier (NYSE:IRF), QUALCOMM (Nasdaq: QCOM), Maxim (Nasdaq:MXIM) Get Positive Sentiment from FBR
FBR had a number of positive takeaways from the CES, and among them was positive sentiment on Atmel (Nasdaq:ATML), Broadcom (Nasdaq:BRCM), Int'l Rectifier (NYSE:IRF), QUALCOMM (Nasdaq: QCOM) and Maxim (Nasdaq:MXIM), among many others.
They raised earnings per share and/or price targets on the companies named, and see some real competition coming agains Apple's (Nasdaq:AAPL) iPhone.
FBR said, "We attended our ninth consecutive Consumer Electronics Show in Las Vegas last week to assess demand trends and the latest round of gadgets. Most prevalent this year were tablets and smartphones (and touchscreens), 'wireless everything,' connected TVs and other content delivery devices, and even electronicized automobiles. Clearly, tablets are the latest craze, with more than 150 different tablets in development around the world. Only a handful of these devices will be successful en masse, thus meaning the other 140 devices will be 'me-too' flops. We saw beautiful, state-of-the-art smartphones from LG, Motorola (NYSE: MOT), Samsung, HTC, and others, with some of those devices finally sleek enough to provide real competition to the Apple iPhone. QUALCOMM, Broadcom, Atmel, Nvidia (Nasdaq: NVDA), and Maxim are five chip stocks with meaningful smartphone exposure. 'Wireless everything' continues to be thematic with Wi-Fi, Bluetooth, 4G LTE, NFC (near-field communications used for e-wallet and security functions), and even wireless USB proliferating throughout a host of brand-new devices that previously did not exist, a primary reason for better-than-typical electronics demand trends of late (a trend that could certainly continue in coming years). Content delivery devices and connected TVs are proliferating, and while connected TVs will take years to become mainstream, this trend is a natural extension of broadband connectivity. Regarding demand trends, we think semiconductor demand is more resilient and robust than expected, likely setting up another round of 'beat and raise' earnings reports from chip firms following a less-than-seasonal 2H10. We are raising EPS estimates and price targets on ATML, BRCM, and IRF, and are raising price targets on QCOM, NVDA, MXIM, ON Semi (Nasdaq: ONNN), Silicon Labs (Nasdaq: SLAB), and Atheros (Nasdaq: ATHR). Regarding chip stocks, while playing some defense could make sense following such a run higher since Labor Day, we do think a 'beat and raise' round of earnings results in late January, improving economic and manufacturing data, an inflow of cash from bonds to equities, and still reasonable chip firm valuations may mean that any profit-taking sell-off is short term in nature and a likely buying opportunity. We still expect the SOX to grind higher towards 475–500 by year-end 2011. Stocks to focus on for upside include BRCM, MRVL, MXIM, NSM, ONNN, FCS, and Int'l Rectifier (NYSE: IRF)."
Atmel was trading at $13.27, down $0.22, or 1.63 percent, as of 11:46 AM EST. Broadcom was at $45.23, up $0.34, or 0.76 percent. International Rectifier was up to $30.13, gaining $0.13, or 0.43 percent. QUALCOMM was at $51.99, up $0.26, or 0.50 percent. Maxim was at $24.33, up $0.34, or 1.42 percent.
They raised earnings per share and/or price targets on the companies named, and see some real competition coming agains Apple's (Nasdaq:AAPL) iPhone.
FBR said, "We attended our ninth consecutive Consumer Electronics Show in Las Vegas last week to assess demand trends and the latest round of gadgets. Most prevalent this year were tablets and smartphones (and touchscreens), 'wireless everything,' connected TVs and other content delivery devices, and even electronicized automobiles. Clearly, tablets are the latest craze, with more than 150 different tablets in development around the world. Only a handful of these devices will be successful en masse, thus meaning the other 140 devices will be 'me-too' flops. We saw beautiful, state-of-the-art smartphones from LG, Motorola (NYSE: MOT), Samsung, HTC, and others, with some of those devices finally sleek enough to provide real competition to the Apple iPhone. QUALCOMM, Broadcom, Atmel, Nvidia (Nasdaq: NVDA), and Maxim are five chip stocks with meaningful smartphone exposure. 'Wireless everything' continues to be thematic with Wi-Fi, Bluetooth, 4G LTE, NFC (near-field communications used for e-wallet and security functions), and even wireless USB proliferating throughout a host of brand-new devices that previously did not exist, a primary reason for better-than-typical electronics demand trends of late (a trend that could certainly continue in coming years). Content delivery devices and connected TVs are proliferating, and while connected TVs will take years to become mainstream, this trend is a natural extension of broadband connectivity. Regarding demand trends, we think semiconductor demand is more resilient and robust than expected, likely setting up another round of 'beat and raise' earnings reports from chip firms following a less-than-seasonal 2H10. We are raising EPS estimates and price targets on ATML, BRCM, and IRF, and are raising price targets on QCOM, NVDA, MXIM, ON Semi (Nasdaq: ONNN), Silicon Labs (Nasdaq: SLAB), and Atheros (Nasdaq: ATHR). Regarding chip stocks, while playing some defense could make sense following such a run higher since Labor Day, we do think a 'beat and raise' round of earnings results in late January, improving economic and manufacturing data, an inflow of cash from bonds to equities, and still reasonable chip firm valuations may mean that any profit-taking sell-off is short term in nature and a likely buying opportunity. We still expect the SOX to grind higher towards 475–500 by year-end 2011. Stocks to focus on for upside include BRCM, MRVL, MXIM, NSM, ONNN, FCS, and Int'l Rectifier (NYSE: IRF)."
Atmel was trading at $13.27, down $0.22, or 1.63 percent, as of 11:46 AM EST. Broadcom was at $45.23, up $0.34, or 0.76 percent. International Rectifier was up to $30.13, gaining $0.13, or 0.43 percent. QUALCOMM was at $51.99, up $0.26, or 0.50 percent. Maxim was at $24.33, up $0.34, or 1.42 percent.
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