24/7 Wall St. » ADI

Dividends and Buybacks May Rekindle Buying Chip Stocks for Value Investors

Jon C. Ogg — Fri, 24 May 2013 14:05:07 +0000

Sterne Agee analyst Vijay Rakesh has given a snapshot on various semiconductor sector plays ahead. While many fundamental analysts have keyed in on fundamentals, one of Rakesh’s angles is covering higher dividends, stock buybacks and share repurchase plans as potential drivers.

On share buyback and share repurchase plans, Rakesh points to higher buybacks at companies like SanDisk Corp. (NASDAQ: SNDK), ON Semiconductor Corp. (NASDAQ: ONNN) and Skyworks Solutions Inc. (NASDAQ: SWKS). He thinks that this is potentially pointing to increased Optimism on their outlook and attractive current valuations. Nvidia Corp. (NASDAQ: NVDA) also was outlined as a potential winner with its new $750 million buyback announcement.

On the flip side, some chip companies are decreasing share repurchases, such as Analog Devices Inc. (NASDAQ: ADI) and Intel Corp. (NASDAQ: INTC). Analog Devices said that buybacks have come down significantly as it continues to be disciplined and opportunistic in share price buyback levels.

Then there is the dividend front that has enticed income-oriented investors for years now. Rakesh said, “Given an increasing Industry wide and investor focus on Dividends, we are pointing out that we currently have 7 names paying dividends.” The firm sees strong dividends (with yields included) in Avago Technologies Ltd. (NASDAQ: AVGO) at 2.2%, Cypress Semiconductor Corp. (NASDAQ: CY) at 3.9%, Nvidia Corp. (NASDAQ: NVDA) as a new dividend at a 2% yield, Analog Devices Inc. (NASDAQ: ADI) at a 2.9% yield, Intel Corp. (NASDAQ: INTC) at 3.7%, Qualcomm Inc. (NASDAQ: QCOM) at 2.1% and Texas Instruments Inc. (NASDAQ: TXN) with a 3% yield. Rakesh pointed out that dividend payout ratios have been going up on Avago Technologies and Cypress Semiconductor, while Nvidia is a new initiation.

For those who wish to avoid the individual company risks and eliminate the risk that either the Apple Inc. (NASDAQ: AAPL) iPad or iPhone upgrade will no longer include one company’s chipsets, there are exchange traded funds (ETFs) for the chip sector that capture the dividend and buyback names handily. The Market Vectors Semiconductor ETF (NYSEMKT: SMH) is listed as having a dividend of almost 2% and is very active, although we would point out that the last dividend was an annual dividend, and we have no way to know what the dividend will be for 2013.

Some of the expected upside in the share price is well above-market expectations for some of these names. Below is Vijay Rakesh’s coverage universe with ratings, price targets and implied upside or downside:

Filed under: Active Trader, Analyst Calls, Dividends & Buybacks, Semiconductor, Technology Tagged: AAPL, ADI, AVGO, CY, INTC, NVDA, ONNN, QCOM, SMH, SNDK, SWKS

Argus Makes Model Portfolio Changes (NUE, HCP, MDT, AMGN, HUM, ADI, JNPR, ELX, IPG)

Jon C. Ogg — Thu, 11 Apr 2013 12:15:46 +0000

Argus offers what is truly considered to be independent investment research. This gives the firm the lack of any or most of the traditional conflicts of interest that can be the case as far as Wall St. sell-side upgrades and downgrades are concerned. That is perhaps one of the top reasons why we give them high marks when their team of CFAs and analysts come up with research ideas.

In the Equity Income model portfolio, the firm says to add to positions in Nucor Corp. (NYSE: NUE) and in HCP Inc. (NYSE: HCP).

In the Growth & Income model portfolio, Argus said to buy Medtronic Inc. (NYSE: MDT) and Amgen Inc. (NASDAQ: AMGN). It also said to sell its positions in Humana Inc. (NYSE: HUM) and in Analog Devices Inc. (NASDAQ: ADI).

The final model portfolio changes came in the Mid-Cap Growth portfolio. Argus recommended buying a full position in Juniper Networks Inc. (NYSE: JNPR) at $17.82 and selling the full position in Emulex Corp. (NYSE: ELX), as well as selling out the position in Interpublic Group of Companies Inc. (NYSE: IPG).

Filed under: Active Trader, Analyst Calls, Value Investing Tagged: ADI, AMGN, ELX, HCP, HUM, IPG, JNPR, MDT, NUE

Analog Devices CEO Jerry Fishman Dies

Douglas A. McIntyre — Sat, 30 Mar 2013 13:32:09 +0000

Analog Devices (NASDAQ: ADI) long time CEO Jerry Fishman has died.

The company announced:

Analog Devices Inc. (NASDAQ: ADI), with great sadness, announced today that Jerald G. Fishman passed away suddenly from an apparent heart attack yesterday evening. Mr. Fishman was 67 years old.

In accordance with the Company’s bylaws, ADI’s President Vincent Roche has been appointed Chief Executive Officer on an interim basis by ADI’s Board of Directors.

In the last reported quarter, revenue dropped 11% t0 $622 million. Net income fell slightly to $131 million. At the time Fishman said:

“Results for the first quarter were within the range we communicated and represented a generally weak macroeconomic environment exacerbated by year-end inventory reductions at many customers. Nevertheless, our operating performance remained strong, as we carefully managed our business to balance the long term opportunities for ADI with the realities of current market conditions. In January, order rates began to improve across most markets and geographies and have remained strong so far this quarter. As a result, we are planning for solid revenue growth in our second quarter, in the range of 4-8% sequentially with significant operating leverage.”

Filed under: 24/7 Wall St. Wire, Semiconductor Tagged: ADI

Analyst Says the Time to Rotate Semiconductor Stocks Is Now (ADI, LLTC, MXIM, TXN, INTC, BRCM, AVGO, NXPI, FCS, ONNN, MPWR, SIMO, DB, GS)

Lee Jackson — Tue, 19 Mar 2013 11:50:59 +0000

The stock market has had a tremendous first quarter, and semiconductor stocks as a sector are up more than 15%. Even though many Wall St. analysts and equity strategists see the market moving higher, it often makes sense to rotate stocks within a sector to take advantage of solid price appreciation. In a new report, the semiconductor team at Deutsche Bank A.G. (NYSE: DB) suggests that investors take profits on the analog semiconductor names and rotate to others that are more reasonable from a historical price perspective.

In their research report, the Deutsche Bank analysts note that they have observed that investors have afforded large cap analog stocks a safety/early-cycle-driven valuation premium that has reached historic highs. While they admire the quality of the analog names, they expect their premium to lessen as data points more rapidly improve for digital/mixed signal stocks that currently trade at a relative discount but have positive second half of the year seasonality, co-specific product cycles and/or true cyclical leverage.

Simply stated, they feel that the valuation multiples for large-cap analog stocks, specifically Analog Devices Inc. (NASDAQ: ADI), Linear Technology Corp. (NASDAQ: LLTC), Maxim Integrated Products Inc. (NASDAQ: MXIM) and Texas Instruments Inc. (NASDAQ: TXN) have expanded well above historical averages. The analysts also point out that semiconductor investors were last positioned in a similarly “safe” manner during the depths of the Great Recession in early 2009, with that peak soon being followed by the analog premium compressing over subsequent quarters from a 55% premium to nearly a 55% discount. That translates to a big sell signal.

So what stocks are ripe for the buying in this classic sector rotation? Here is the list of the top names from Deutsche Bank:

Mega cap giant Intel Corp. (NASDAQ: INTC) leads off the list. A laggard for years, the stock really has become a value name. It sports a solid 4.20% dividend and a possible departure of the CEO. The Thomson/First Call consensus price objective for Intel is $23.

In the large cap arena, the top pick is Wall St. favorite Broadcom Corp. (NASDAQ: BRCM), with its diverse product range that focuses on voice, video, data and multimedia connectivity for home, office and mobile environments. The Wall St. price target is $40 for Broadcom.

In the mid cap area there are two names for investors to look at. Avago Technologies Ltd. (NASDAQ: AVGO) focuses on chips for the optical sector and just raised its dividend. The consensus price target for the stock is $42.

Based in the Netherlands, NXP Semiconductors N.V. (NASDAQ: NXPI) is also a mid cap favorite. The consensus price target for this mixed signal chip leader is $36.

In the small cap space, the Deutsche Bank research team has four names that investors should look at.

Fairchild Semiconductor International Inc. (NYSE: FCS) has three strong segments to power earnings. The mobile computing, power conversion and automotive divisions drive a diversified revenue stream for this small cap leader. The consensus price target is $18, which would represent a 25% move from current trading levels.

ON Semiconductor Corp. (NASDAQ: ONNN) also makes the small cap list of stocks to buy. It was upgraded yesterday to Buy from Neutral at Goldman Sachs (NYSE: GS) with a price target of $11. The consensus target is $10.

Fabless semiconductor company Monolithic Power Systems Inc. (NASDAQ: MPWR) also makes the grade. The consensus estimate for the stock is $26.

Rounding out the top semiconductor stocks to buy is Silicon Motion Technology Corp. (NASDAQ: SIMO). Based in Taiwan, this fabless semiconductor company designs, develops and supplies a portfolio of multimedia data processing, storage and transfer solutions primarily for consumer electronics. The consensus price target is $20. This could be a huge winner for investors as the price target represents a move of more than 50% from current levels.

The path is clear for the holders of analog semiconductor stocks. If the analysts are right in their rotation call, it is time to sell the analog names and rotate into better value. This is an excellent way to capture profits, but still have semiconductor stocks as a part of a diversified portfolio.

Filed under: Active Trader, Analyst Calls, Semiconductor, Semiconductors, Technology, Technology Companies Tagged: ADI, AVGO, BRCM, DB, FCS, GS, INTC, LLTC, MPWR, MXIM, NXPI, ONNN, SIMO, TXN

24/7 Wall St. Closing Bell — February 20, 2013: Markets Open Low, Slide Further on Fed Minutes (WIN, LOW, BIDU, BCS, GMCR, ADI, CF, DELL, HLF, AVA, CLH, DISH, LEAP, MGM, SODA, TOL, CROX, ETP, PAAS, TSLA, WLT, AUY, CG, CHK, CDE, ESV, SWY, WMT, OMX, ODP, NTSP, TSS, HNR)

Paul Ausick — Wed, 20 Feb 2013 21:04:40 +0000

U.S. equity markets opened flat to lower this morning as it waited for data on U.S. housing starts and producer price inflation. In Europe, markets got some downward signals from a higher-than-expected reading on German PPI, a sharper-than-expected drop in Italian industrial production, a slightly higher unemployment rate in the U.K., and strikes in Greece (more coverage here). In Asia, the only data point of note came from China, where foreign direct investment declined by 7.3%. In the U.S., housing starts came in lower than expected, mainly the result of a sharp drop in multifamily building (more coverage here). The U.S. producer price index rose to its highest level since September. In the afternoon, the FOMC minutes were released, which pushed markets down even more (more coverage here).

The U.S. dollar index rose 0.75% today, now at 81.065. The GSCI commodity index is down 0.5% at 675.63, with commodities prices higher today. WTI March crude oil closed down 2.2% today, at $94.46 a barrel. The April contract closed down 1.9% at 95.22 and will be the source of the WTI quote for the next month. Brent crude trades down at 1.7% at $115.52 a barrel. Natural gas is up 0.4% today at about $3.28 per million BTUs. Gold settled down 1.6% today at $1,578.00 an ounce.

The unofficial closing bells put the DJIA down more than 109 points to 13,926.47 (-0.78%), the NASDAQ fell about 49 points (-1.53%) to 3,164.41, and the S&P 500 fell -1.24% or about 19 points to 1,511.90.

There were a several analyst upgrades and downgrades today, including Windstream Corp. (NASDAQ: WIN) cut to ‘sell’ at UBS; Lowe’s Companies (NYSE: LOW) reiterated as ‘buy’ and price target raised to $44 at Argus; Baidu Inc. (NASDAQ: BIDU) cut to ‘underperform’ at CLSA; Barclays PLC (NYSE: BCS) cut to ‘neutral’ at Goldman Sachs; and Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reiterated as ‘buy’ and price target raised to $54 at Argus.

Earnings reports since markets closed last night resulted in several price moves today, including these: Analog Devices Inc. (NASDAQ: ADI) is down 2.2% at $45.98; CF Industries Holdings Inc. (NYSE: CF) is down 5.3% at $206.88; Dell Inc. (NASDAQ: DELL) is up 0.25% at $XX (more coverage here); Herbalife Ltd. (NYSE: HLF) is down 5% at $37.77 (more coverage here); Avista Corp. (NYSE: AVA) is down 0.2% at $26.15; Clean Harbors Inc. (NYSE: CLH) is up 6.1% at $53.37; Dish Network Corp. (NASDAQ: DISH) is down 0.25% at $36.00; Leap Wireless International Inc. (NASDAQ: LEAP) is down 8.3% at $5.61; MGM Resorts International (NYSE: MGM) is down 1.5% at $12.55; Sodastream International Ltd. (NASDAQ: SODA) is down 6.8% at $48.90 (more coverage here); and Toll Brothers Inc. (NYSE: TOL) is down 8.7% at $33.71 (more coverage here).

After markets close today and before they open tomorrow morning we are scheduled to hear from Crocs Inc. (NASDAQ: CROX), Energy Transfer Partners LP (NYSE: ETP), Pan American Silver Corp. (NASDAQ: PAAS), Tesla Motors Inc. (NASDAQ: TSLA), Walter Energy Inc. (NYSE: WLT), Yamana Gold Inc. (NYSE: AUY), Carlyle Group LP (NASDAQ: CG), Chesapeake Energy Corp. (NYSE: CHK) (more coverage here), Coeur d’Alene Mines Corp. (NYSE: CDE), Ensco PLC (NYSE: ESV), Safeway Inc. (NYSE: SWY), and Wal-Mart Stores Inc. (NYSE: WMT).

Some standouts from today include the following stocks:

OfficeMax Inc. (NYSE: OMX) is down 11.8% at $11.47 after posting a new 52-week high of $14.92 earlier today. The office supply retailer and Office Depot Inc. (NYSE: ODP) finally pulled the trigger on their merger after one false start this morning. Office Depot shares are down 22.1% at $3.91. More coverage here.

Netspend Holdings Inc. (NASDAQ: NTSP) is up 28.6% at $15.80 after posting a new 52-week high of $15.96 earlier today. The pre-paid credit card provider has agreed to be acquired by Total System Services Inc. (NYSE: TSS) for about $1.4 billion in cash ($16 a share).

Harvest Natural Resources Inc. (NYSE: HNR) is down 40% at $5.50. The oil & gas junior said today that a planned sale to Indonesia’s Pertamina has been cancelled. More coverage here.

Stay tuned for Thursday. St. Louis Fed President James Bullard, San Francisco Fed President John Williams, and Dallas Fed President Richard Fisher are giving speeches. We have also noted the following events on Tuesday’s schedule (all times Eastern):

8:30 a.m. – Consumer price index
8:30 a.m. – New claims for unemployment benefits
8:58 a.m. – Flash PMI manufacturing index
10:00 a.m. – Existing home sales
10:00 a.m. – Philadelphia Fed survey
10:00 a.m. – Leading indicators
10:30 a.m. – EIA weekly natural gas storage report
11:00 a.m. – EIA weekly petroleum status report
1:00 p.m. – 30-year Treasury Inflation-Protected securities (TIPS) auction
4:30 p.m. – Fed balance sheet and money supply

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADI, AUY, AVA, BCS, BIDU, CDE, CF, CG, CHK, CLH, CROX, DELL, DISH, ESV, ETP, GMCR, HLF, HNR, LEAP, LOW, MGM, NTSP, ODP, OMX, PAAS, SODA, SWY, TOL, TSLA, TSS, WIN, WLT, WMT

Top Analyst Upgrades and Downgrades (ACMP, ALXN, ADI, BIDU, BCS, ESRX, GMCR, LOW, MM, NTSP, RDN, SEE, SPLS, HOT, WIN)

Jon C. Ogg — Wed, 20 Feb 2013 13:20:13 +0000

These are some of this Wednesday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

Access Midstream Partners L.P. (NYSE: ACMP) reiterated Outperform but on Focus List at Credit Suisse.

Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) raised to Buy from Neutral at Lazard.

Analog Devices Inc. (NASDAQ: ADI) reiterated Outperform and raised target to $50 from $48 at Credit Suisse.

Baidu Inc. (NASDAQ: BIDU) cut to Underperform at CLSA.

Barclays PLC (NYSE: BCS) cut to Neutral at Goldman Sachs.

Express Scripts Holding Co. (NASDAQ: ESRX) cut to Neutral at Macquarie and reiterated Outperform at Credit Suisse.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reiterated Buy and raised price target by $4 to $54 at Argus.

Lowe’s Companies Inc. (NYSE: LOW) reiterated Buy and raised target to $44 from $40 at Argus.

Millennial Media Inc. (NYSE: MM) cut to Equal Weight at Morgan Stanley.

NetSpend Holdings Inc. (NASDAQ: NTSP) has announced it is being acquired, and it has so far been downgraded by Credit Suisse and Stern Agee.

Radian Group Inc. (NYSE: RDN) raised to Positive at Susquehanna.

Sealed Air Corp. (NYSE: SEE) cut to Neutral at J.P. Morgan.

Staples Inc. (NASDAQ: SPLS) raised to Neutral at Citigroup.

Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) cut to Hold from Buy but target raised to $66 at Jefferies.

Windstream Corp. (NASDAQ: WIN) cut to Sell from Neutral at UBS.

UBS has five GARP picks, meaning growth at a reasonable price.

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ACMP, ADI, ALXN, BCS, BIDU, ESRX, GMCR, HOT, LOW, MM, NTSP, RDN, SEE, SPLS, WIN

24/7 Wall St. Closing Bell — February 19, 2013: Markets Keep Upward Momentum (GFI, APA, CSTR, WFC, BRK-A, CRMT, ESRX, NI, WIN, ADI, CF, DELL, HLF, AVI, CLH, DISH, LEAP, MGM, SODA, TOL, ODP, OMX, SPLS, NVGN, SPWR)

Paul Ausick — Tue, 19 Feb 2013 21:04:08 +0000

U.S. equity markets opened slightly higher this morning and managed to get within striking distance of five-year highs. There was little economic data released anywhere today, but what there was came out mixed. In Europe, the ZEW economic sentiment index rose more than expected in the eurozone. In Asia, no economic data was forthcoming at all today, the first trading day following a week-long closure of the Shanghai exchange in observance of the lunar new year holiday. In the U.S., the housing price index from the National Association of Home Builders ticked a bit lower, putting pressure on homebuilders’ stocks (more coverage here). Health insurance stocks fell on a proposal to lower 2014 Medicare and Medicaid co-payments (more coverage here).

The U.S. dollar index fell 0.18% today, now at 80.476. The GSCI commodity index is down 0.5% at 675.90, with commodities prices mixed again today. WTI crude oil closed up 0.8% today, at $96.66 a barrel. Brent crude trades down fractionally at $117.38 a barrel. Natural gas is up 3.7% today at about $3.27 per million BTUs. Gold settled down 0.3% today at $1,604.20 an ounce.

The unofficial closing bells put the DJIA up about 54 points to 14,035.75 (0.39%), the NASDAQ rose nearly 22 points (0.68%) to 3,213.59, and the S&P 500 rose 0.73% or about 11 points to 1,530.91.

There were a several analyst upgrades and downgrades today, including Gold Fields Inc. (NYSE: GFI) cut to ‘sell’ at Citigroup; Apache Corp. (NYSE: APA) cut to ‘neutral’ at Macquarie; Coinstar Inc. (NASDAQ: CSTR) cut to ‘underweight’ at J.P. Morgan; Wells Fargo & Co. (NYSE: WFC) raised to ‘outperform’ at KBW; and Berkshire Hathaway Inc. (NYSE: BRK-A) raised to ‘outperform’ at KBW.

Earnings reports since markets closed last Friday resulted in several price moves today, including these: America’s Car-Mart Inc. (NASDAQ: CRMT) is up 10.3% at $45.82; Express Scripts Holding Co. (NASDAQ: ESRX) is up 2% at $56.70 (more coverage here); NiSource Inc. (NYSE: NI) is up 1% at $27.05 after posting a new 52-week high of $27.40 earlier today; and Windstream Corp. (NASDAQ: WIN) is up 0.9% at $9.01.

After markets close today and before they open tomorrow morning we are scheduled to hear from Analog Devices Inc. (NASDAQ: ADI), CF Industries Holdings Inc. (NYSE: CF), Dell Inc. (NASDAQ: DELL), Herbalife Ltd. (NYSE: HLF), Avista Corp. (NYSE: AVA), Clean Harbors Inc. (NYSE: CLH), Dish Network Corp. (NASDAQ: DISH), Leap Wireless International Inc. (NASDAQ: LEAP), MGM Resorts International (NYSE: MGM), Sodastream International Ltd. (NASDAQ: SODA), and Toll Brothers Inc. (NYSE: TOL).

Some standouts from today include the following stocks:

Office Depot Inc. (NYSE: ODP) is up 9.8% at $5.04 after posting a new 52-week high of $6.09 earlier today. The office supply retailer is said to be in merger talks with competitor OfficeMax Inc. (NYSE: OMX), which itself is up 19.6% at $12.86 after posting its own new high of $14.08. Even larger competitor Staples Inc. (NASDAQ: SPLS) is up 12.9% at $14.62 on the news. More coverage here.

Novogen Ltd. (NASDAQ: NVGN) is up 227.3% at $6.84 after posting a new 52-week high of $7.60 earlier today. The Australia-based biotech company revealed highly positive results in a test of it ovarian cancer treatment.

SunPower Corp. (NASDAQ: SPWR) is up 16.8% at $13.37 after posting a new 52-week high of $13.66 earlier today. The solar panel maker is leading solar stocks higher as investors respond to some generally positive news in the sector.

Stay tuned for Wednesday. We have noted the following events on Tuesday’s schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:30 a.m. – Housing starts
8:30 a.m. – Producer price index
11:30 a.m. – 4-week bill auction
2:00 p.m. – FOMC minutes released

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADI, APA, AVI, BRK-A, CF, CLH, CRMT, CSTR, DELL, DISH, ESRX, GFI, HLF, LEAP, MGM, NI, NVGN, ODP, OMX, SODA, SPLS, SPWR, TOL, WFC, WIN

Analyst Sees Irresistible Cyclical Bottom in Semiconductors in 2013, with Caveats

Jon C. Ogg — Mon, 14 Jan 2013 15:20:38 +0000

Credit Suisse is out with its outlook for semiconductors in 2013. The report sounds great at first when you hear “Irresistible Cyclical Bottom,” but then you have to realize that it is followed by the phrase “Immutable Slowing Consumer.” Credit Suisse is making some changes to its semiconductor universe. While some calls are cautious, the overall trend here is positive for long-term investors who are trying to find bargains (assuming Credit Suisse is right, of course).

The firm’s analyst John Pitzer said:

We are approaching a bottom in the Semiconductor Cycle. Unfortunately, while cyclical tailwinds are in place, structural headwinds could mute the overall growth off of the bottom. The Cyclical-Structural tug-of-war underpins our anemic estimate for 2013 Semiconductor revenue growth of just +5.2% (prior +7.6%), our ’12-’15 CAGR of +5.1% (prior +8.5%) and expected trough to peak quarterly revenue growth of 12.7% versus normal of 25% to 30%.

Pitzer said that bottoms-up consensus estimates are embedding revenue growth of +3.3% for 2013, but it thinks that estimates will decline. He also noted that the stocks tend to ignore the last estimate reduction. The current next 12 month price to earnings ratio (P/E) of 15.9 is a 30% to 35% discount to the average P/E on trough earnings, but the firm has a more tempered view. He said, “We expect better growth in Analog/Mix-Signal vs. Digital, and prefer Industrial, Auto, Infrastructure (IAI) over Consumer. Analog/Mix Signal outperformance is still in early innings as better growth and stable ROI drive structurally higher valuations.”

The firm’s most nonconsensus call is that the wireless semiconductor growth is perhaps more muted than expected. It sees MPUs having better cyclical growth than expected, and, going against the grain, the firm sees memory supply trends continuing to be extremely favorable. Credit Suisse included its Top 5 Themes and 5 Black Swans Events for 2013, along with views on most of the 24 companies it covers in the space.

In today’s call, Credit Suisse is raising the ratings of Xilinx Inc. (NASDAQ: XLNX) and Analog Devices Inc. (NASDAQ: ADI) to Outperform from Neutral, while downgrading Maxim Integrated Products Inc. (NASDAQ: MXIM) to Neutral from Outperform.

Credit Suisse also listed its Top Semiconductor Picks for 2013 as follows: NXP Semiconductors N.V. (NASDAQ: NXPI), SanDisk Corp. (NASDAQ: SNDK), Linear Technology Corp. (NASDAQ: LLTC), Micron Technology Inc. (NASDAQ: MU) and Analog Devices Inc. (NASDAQ: ADI). Credit Suisse’s top global picks are Taiwan Semiconductor (NYSE: TSM), Samsung and Dialog Semi.

Credit Suisse went on to say that it is maintaining its Outperform rating on Intel Corp. (NASDAQ: INTC), but the firm sees Intel as a range-bound stock between $20 and $24 in the first half of 2013 before ultimately moving higher.

Filed under: 24/7 Wall St. Wire, Analyst Calls, Semiconductor, Technology, Technology Companies Tagged: ADI, INTC, LLTC, MU, MXIM, NXPI, SNDK, TSM, XLNX

Top Analyst Upgrades and Downgrades (ALTR, ADI, AVB, BIIB, KMX, CREE, EMC, IACI, LNCO, LINE, MYL, NTAP, NXPI, PMT, RIMM, RIGL, TASR, TKR, VMW, XLNX)

Jon C. Ogg — Thu, 29 Nov 2012 13:15:51 +0000

These are some of the top analyst upgrades, downgrades and initiations seen in Wall St. research calls this Thursday.

Altera Corp. (NASDAQ: ALTR) started at Neutral at SunTrust Robinson Humphrey.

Analog Devices Inc. (NASDAQ: ADI) reiterated Buy but raised target to $46 at Argus.

AvalonBay Communities Inc. (NYSE: AVB) raised to Market Perform at BMO.

Biogen Idec Inc. (NASDAQ: BIIB) reiterated Buy and raised target to $160 at Argus.

CarMax Inc. (NYSE: KMX) raised to Buy with $42 target at Goldman Sachs.

Cree Inc. (NASDAQ: CREE) cut to Hold at Deutsche Bank.

EMC Corp. (NYSE: EMC) started as Outperform at CLSA.

IAC/InterActiveCorp (NASDAQ: IACI) raised to Outperform at Wells Fargo.

LinnCo LLC (NASDAQ: LNCO) started as Buy at Citi.

Linn Energy LLC (NASDAQ: LINE) resumed with Buy rating at Citi

Mylan Inc. (NASDAQ: MYL) reiterated Buy but raised 2012/2013 earnings estimates at Argus.

NetApp Inc. (NASDAQ: NTAP) started as Underperform at CLSA.

NXP Semiconductors N.V. (NASDAQ: NXPI) started as Buy at SunTrust Robinson Humphrey.

PennyMac Mortgage Investment Trust (NYSE: PMT) reiterated Outperform with $27 target at Credit Suisse.

Research In Motion Ltd. (NASDAQ: RIMM) raised to Buy at Goldman Sachs (FULL CALL SUMMARY).

Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) started as Neutral at UBS.

TASER International Inc. (NASDAQ: TASR) cut to Neutral at JPMorgan.

Timken Co. (NYSE: TKR) cut to Hold at Jefferies.

VMware Inc. (NYSE: VMW) started as Buy at CLSA.

Xilinx Inc. (NASDAQ: XLNX) started at Neutral at SunTrust Robinson Humphrey.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ADI, ALTR, AVB, BIIB, CREE, EMC, IACI, KMX, LINE, LNCO, MYL, NTAP, NXPI, PMT, RIGL, RIMM, TASR, TKR, VMW, XLNX

24/7 Wall St. Closing Bell — November 28, 2012: Markets Open Lower, Close Higher (LNKD, CAG, CHKP, GLW, UNH, ADI, GMCR, PVH, AEO, ANN, EXPR, TFM, JASO, MOV, LEDS, ARO, GES, TIVO, WDAY, BKS, KR, RY, TIF, KCG, GMCR, TFM)

Paul Ausick — Wed, 28 Nov 2012 21:06:53 +0000

U.S. equity markets opened lower again this morning following Senator Harry Reid’s comments that negotiations on the U.S. fiscal cliff were not going well. In Asia, markets reacted badly to the report and to comments from the U.S. Treasury that the Chinese yuan is still far undervalued. Chinese officials said economic growth with be 7.8% in the fourth quarter. In Europe, markets also reacted to Reid’s statement and Spain’s report of a drop of 9.7% in retail sales in October. U.S. markets responded favorably to comments from Congressman John Boehner that negotiations over the fiscal cliff were going well. New home sales in the U.S. were lower than expected (more coverage here) and the release of the October Beige Book didn’t contain any big surprises (more coverage here).

The U.S. dollar index fell today, now down 0.09% at 80.330 after rising to 80.589 earlier. The GSCI commodity index is down 0.2% at 645.96, with commodities prices mostly lower today. WTI crude oil closed down 0.8% today, at $86.49 a barrel, following the EIA petroleum status report (more coverage here). Brent crude trades down about 0.4% at $109.49 a barrel. Natural gas is down 1.9% today at about $3.70 per thousand cubic feet. Gold settled down 1.5% today at $1,716.50 an ounce (more coverage here).

The unofficial closing bells put the DJIA up nearly 107 points to 12,985.03 (0.83%), the NASDAQ rose about 24 points (0.81%) to 2,991.78, and the S&P 500 rose 0.79% or about 11 points to 1,409.93.

There were several analyst upgrades and downgrades today, including LinkedIn Corp. (NYSE: LNKD) started as ‘neutral’ at Cowen; ConAgra Foods Inc. (NYSE: CAG) reiterated as ‘buy’ with a target price of $33 at BofA/ML; Check Point Software Technologies Inc. (NASDAQ: CHKP) started as ‘market perform’ at BMO; Corning Inc. (NYSE: GLW) reiterated as ‘buy’ with a target price of $20 at Argus; and UnitedHealth Group Inc. (NYSE: UNH) reiterated as ‘outperform’ with a target price of $59 at Credit Suisse.

Earnings reports of interest since U.S. markets closed last night have resulted in price moves today, including these as of the last half hour of trading: Analog Devices Inc. (NASDAQ: ADI) is up 0.8% at $40.41; PVH Corp. (NYSE: PVH) is up 6.8% at $116.68 after posting a new 52-week high of $116.93 earlier today; American Eagle Outfitters Inc. (NYSE: AEO) is up 7% at $20.75 (more coverage here); Ann Inc. (NYSE: ANN) is up 8.2% at $35.08; Express Inc. (NYSE: EXPR) is up 9.4% at $14.21; JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is up 7.7% at $0.70 (more coverage here); Movado Group Inc. (NYSE: MOV) is up 9.3% at $35.23; and SemiLEDS Corp. (NASDAQ: LEDS) is flat at $1.18.

After markets close today and before they open tomorrow morning we are scheduled to hear from Aeropostale Inc. (NYSE: ARO), Guess? Inc. (NYSE: GES), Tivo Inc. (NASDAQ: TIVO), Workday Inc. (NASDAQ: WDAY), Barnes & Noble Inc. (NYSE: BKS), Kroger Co. (NYSE: KR), Royal Bank of Canada (NYSE: RY), and Tiffany & Co. (NYSE: TIF).

Some standouts from today include the following stocks:

Knight Capital Group Inc. (NYSE: KCG) is up 13.7% at $3.38. The stock trader and market maker has received a buyout offer from Getco Holding. More coverage here.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is up 28.8% at $27.29. The coffee company posted better-than-expected profits and raised guidance last night. More coverage here.

The Fresh Market Inc. (NASDAQ: TFM) is down 13.5% at $52.10. The specialty grocer put up weak numbers and guided lower.

Stay tuned for Thursday. Dallas Fed President Richard Fisher is giving a speech. We have also noted the following events on the schedule (all times Eastern):

8:30 a.m. – GDP
8:30 a.m. – New claims for unemployment benefits
10:00 a.m. – Pending home sales
10:30 a.m. – EIA weekly natural gas storage report
11:00 a.m. – Kansas City Fed manufacturing index
1:00 p.m. – 7-year Treasury note auction
4:30 p.m. – Fed balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADI, AEO, ANN, ARO, BKS, CAG, CHKP, EXPR, GES, GLW, GMCR, JASO, KCG, KR, LEDS, LNKD, MOV, PVH, RY, TFM, TIF, TIVO, UNH, WDAY