MKS Instruments price target raised to $130 from $115 at Deutsche Bank » 08:5701/2701/27/20
Deutsche Bank analyst…
Deutsche Bank analyst Sidney Ho raised his price target for MKS Instruments to $130 from $115 and keeps a Buy rating on the shares. MKSs tarted to see a pickup in its semis business in Q3 and this momentum should continue, providing upside potential for Q4 results and Q1 guidance, Ho tells investors in a research note.
Lam Research put volume heavy and directionally bearish » 15:1501/2301/23/20
Bearish flow noted in Lam…
Bearish flow noted in Lam Research with 10,504 puts trading, or 3x expected. Most active are 1/24 weekly 312.5 calls and 1/24 weekly 305 puts, with total volume in those strikes near 3,500 contracts. The Put/Call Ratio is 1.86, while ATM IV is up over 1 point on the day. Earnings are expected on January 29th.
Lam Research price target raised to $360 from $300 at B. Riley FBR » 11:1701/2101/21/20
B. Riley FBR analyst…
B. Riley FBR analyst Craig Ellis earlier today raised his price target for Lam Research to $360 from $300 ahead of the company's fiscal Q2 results on January 29. The analyst forecasts a "slight" beat in Q2 and "more visible" Q3 outlook upside versus the Street, led by foundry with help from logic and NAND. He believes cyclical tailwinds are picking up and reiterated a Buy rating on Lam Research shares.
Einhorn's Greenlight upped bet against Netflix, exited Voya in fourth quarter » 10:4901/2101/21/20
NFLX, TSLA, VOYA, AER, BHF, CC, GM, GRBK, AGO, DXC, LRCX
In its letter to…
In its letter to investors for the fourth quarter, David Einhorn's Greenlight Capital reported that the funds returned 13.8% in 2019 compared to 31.5% for the S&P 500 index. The letter noted that "we begin 2020 with a portfolio that continues to be concentrated in our best ideas. We currently have 96% of capital in our top 10 longs and 47% of capital in our top 10 shorts." The letter goes on to list top long positions that include AerCap (AER), Brighthouse Financial (BHF), Chemours (CC), General Motors (GM), and Green Brick Partners (GRBK) and short positions that include Assured Guaranty (AGO) and Netflix (NFLX). On Netflix, Greenlight wrote: "We have been negative on NFLX's earnings prospects for a long time, and we used the late2019 bounce in the shares to make it a more substantial investment." The firm added two "medium-sized" new equity longs in the fourth quarter, DXC Technology (DXC) and Software AG of Germany, the letter stated. Additionally, the firm exited its investment in Voya Financial (VOYA) after six and a half years and covered "an unsuccessful small short" in Lam Research (LRCX), the letter stated. Greenlight also stated in the letter: "We have omitted an undisclosed short. Also of note is that Tesla is not included. While we maintain a negative view of the company, our Tesla exposure, which has been mostly expressed through put options, was not large enough to qualify for this list at December 31, 2019."
Lam Research price target raised to $325 from $280 at Needham » 08:4301/2101/21/20
Needham analyst N. Quinn…
Needham analyst N. Quinn Bolton raised his price target on Lam Research to $325 and kept his Buy rating. The analyst cites the increased estimates in his WFE model where he sees 2020 growth improving to 7% and 2021 growth increasing to 11%. Bolton is also positive on the leading position of Lam Research in etch and deposition for 3D NAND and DRAM, as well as its improving share position in the foundry segment.
Citi boosts Lam, MKS targets and opens 'Positive Catalyst Watches' » 06:4701/2101/21/20
LRCX, MKSI, TSM
Citi analyst Atif Malik…
Citi analyst Atif Malik opened "Positive Catalyst Watches" on both Lam Research (LRCX) and MKS Instruments (MKSI) ahead of the companies' Q4 results. The analyst raised his global wafer fab equipment spend model to $47B and $55B from $45B and $51B to reflect the recent TSMC (TSM) capex hike and media reports that Samsung will double memory equipment spend after a sharp decline last year. Malik also raised his price target for Buy-rated Lam Research to $360 from $330 and Buy-rated MKS to $140 from $124. Lam is his top large cap pick in Semiconductor Capital Equipment while MKS is his top SMID pick.
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Taiwan Semiconductor's guidance, CapEx boost a positive for chips » 13:4701/1601/16/20
SMH, TSM, AAPL, QCOM, NVDA, AMD, MRVL, KLAC, LRCX, AMAT, MU
Semiconductor stocks got…
Semiconductor stocks got a boost on Thursday after Taiwan Semiconductor Manufacturing (TSM) reported quarterly earnings. Taiwan Semi's fourth quarter results were mixed but the company's view for its current quarter sparked a semiconductor rally on Wall Street. EARNINGS: Despite putting up a fourth quarter revenue number that was slightly lower than expected, Taiwan Semi said it expects Q1 revenue to reach $10.2B-$10.3B, versus $7.1B a year ago and the $10.09B consensus. "Moving into first quarter 2020, despite mobile product seasonality, we anticipate our business to be supported by the continued ramp-up of 5G smartphones," Chief Financial Officer Wendell Huang said. PROXY FOR GLOBAL TECH DEMAND: TSMC has noteworthy customers in the tech sector including, Apple (AAPL) and Huawei Technologies. Additionally, most of the leading fabless semiconductor companies such as Qualcomm (QCOM), Nvidia (NVDA), Advanced Micro Devices (AMD), Marvell (MRVL) and Broadcom (AVGO) are customers of TSMC. TSMC's spending plans were also a catalyst to tech stocks and semi equipment names like KLA Corporation (KLAC) and Lam Research (LRCX). TSMC projects a capital expense budget in 2020 of $15B to $16B, up from the $14.9B the company spent in 2019. According to Barron's, Citi analyst Atif Malik wrote in a note on Thursday that TSMC's spending plans are "well above" his previous projection of $14.5B. Malik noted that TSMC said it expects to spend 80% of its 2020 CapEx budget on advanced process technologies-at 7nm line widths and smaller and added that the company's robust spending plans comes as good news for the semiconductor equipment manufacturing sector." PRICE ACTION: Shares of Taiwan Semiconductor are modestly higher amid a strong rally in other chip names like AMD, Applied Materials (AMAT), Qualcomm and Micron (MU).
Lam Research price target raised to $340 from $290 at Argus » 07:2801/1601/16/20
Argus analyst Jim…
Argus analyst Jim Kelleher raised his price target on Lam Research to $340 and kept his Buy rating, saying the company offers "new tools for improved yields" and pointing to its "new capabilities in its product portfolio to further improve device yield at the edge of the wafer." The analyst further cites the management's view of increased industry WFE spending after a decline in 2019 and believes that the stock continues to appear attractively valued given its market share gains, renewed margin expansion, and EPS acceleration potential.
Lam Research call volume above normal and directionally bullish » 11:4501/1401/14/20
Bullish option flow…
Bullish option flow detected in Lam Research with 7,050 calls trading, 3x expected, and implied vol increasing over 1 point to 36.85%. Jan-20 310 calls and Jan-20 305 calls are the most active options, with total volume in those strikes near 3,700 contracts. The Put/Call Ratio is 0.32. Earnings are expected on January 29th.
Ichor Holdings price target raised to $40 from $38 at DA Davidson » 09:2201/1401/14/20
ICHR, AMAT, LRCX
DA Davidson analyst…
DA Davidson analyst Thomas Diffely raised his price target on Ichor Holdings (ICHR) to $40 and kept his Buy rating after its above-consensus Q4 pre-announcement and sequential revenue growth guidance anticipated for Q1. The analyst notes that most semicap equipment players are benefiting from the recent heightened demand in Logic and Foundry, but Ichor Holdings is in a "particularly strong position" as a key supplier to market leaders Applied Materials (AMAT) and Lam Research (LRCX).