BofA Cuts Asyst Technologies Target
Banc of America cut its target on Asyst Technologies (ASYT ).
Analyst Mark FitzGerald says push-outs of two 200mm upgrade projects were the largest contributor to the Asyst's earnings shortfall. He says the Japanese joint venture, Shinko Electric, also fell short. FitzGerald says the delays are ominous signs for the chip-equipment industry.
He thinks the risk is high that order patterns for larger chip-equipment companies will decline in the second half. He also thinks larger cap stocks will retest October lows. FitzGerald expects Asyst to trade at 0.5-1.0 times his forward revenues, and the range is $2.50 to 5.00. He cut his $8.50 target to $5.