Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Morgan Stanley Trims Estimates on Chip Stocks

Morgan Stanley cut KLA-Tencor (KLAC) estimates and targets, as well as several other semiconductor equipment names including Applied Materials (AMAT), Cymer (CYMI) and Novellus (NVLS).

Analyst Steven Pelayo says he cut the -15% 2002 semiconductor capital expenditure estimates to -20%, and cut the +30% 2003 estimate to +20%. Although Pelayo says a recovery is still underway, he thinks consensus numbers suggest unrealistic growth. Pelayo thinks these stocks are stuck in trading range, and are waiting for a capitulation/revision by management as well as an improvement in end markets. He expects both these signals in the next 90 days.

Pelayo cut Cymer's $1.30 2003 earnings per share estimate to $1.20, and cut Applied Material's $0.65 2003 EPS estimate to $0.45. He also cut the 2003 estimates on Advanced Energy Industries, Axcelis Technologies, DuPont Photomasks, Kulicke & Soffa, Lam Research, LTX Corp., Photronics, Teradyne, Varian Semiconductor, Electroglas and Mattson Technology. Peyalo maintains his industry view rating of attractive.

blog comments powered by Disqus