CSFB Cuts 2001 Estimates on Novellus

The stock is poised to move upward on Intel's $7.5 billion spending plan for 2001, if Intel can deliver

Credit Suisse First Boston lowered its year 2001 estimates and target price on Novellus Systems (NVLS ), saying it remains cautious about the semiconductor wafer manufacturerng's fundamentals despite expected benefits from chip giant Intel's $7.5 billion spending plan for 2001.

Analyst John Pitzer said he is still cautious on fundamentals of Novellus and has not bought into Intel's optimism. He sees a 40% order decline from December to September, which should represent a "trough." Pitzer cut his 2001 earnings per share estimate to $1.60, from $1.80, to reflect the difficult overall environment and also factored in SAB 101 and the GaSonics acquisition. Pitzer cut his target to $50, from $55.

Novellus stock was gained 6-1/8, to 44 7/8.

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