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AEIS - Advanced Energy Industries Inc News Story

$59.42 0.7  1.2%

Last Trade - 22/09/20

Sector
Technology
Size
Mid Cap
Market Cap £1.76bn
Enterprise Value £1.72bn
Revenue £912.1m
Position in Universe 1684th / 6387

BUZZ-Chip gear makers dwindle as D.A. Davidson downgrades industry

Mon 8th July, 2019 1:23pm
** Chip equipment makers fall in premarket trading as D.A.
Davidson & Co issues industry downgrade - changes rating to
"neutral" as stocks have gained significantly YTD 
    ** Brokerage says the much anticipated memory recovery has
been pushed into 2020 with the memory supply growth expected to
outpace demand growth again in 2019
    ** Pricing is still falling and projected market
stabilization in 2H requires a handset recovery and data center
growth - D.A. Davidson
    ** To make matters worse, geopolitical turmoil in China
(especially with regards to marquee names Huawei and ZTE) has
created uncertainty and is dampening demand from this important
semiconductor customer base - D.A. Davidson
    ** Brokerage says there is significant uncertainty in the
timing and magnitude of the Wafer Fab Equipment (WFE) recovery;
it believes the chip gear makers' stocks will remain largely
range-bound until some clarity returns     
 Company name  New rating  Old rating    New PT       Old PT
   Advanced     Neutral       Buy         $55          $60
    Energy                                         
  Industries                                       
 Inc  AEIS.O                                       
   Applied      Neutral       Buy         $45          $55
  Materials                                        
 Inc  AMAT.O                                       
    Ichor       Neutral       Buy         $25          $32
 Holdings Ltd                                      
   ICHR.O                                          
 Lam Research   Neutral       Buy         $200         $225
     Corp                                          
   LRCX.O                                          
 Kulicke and    Neutral       Buy         $26          $30
    Soffa                                          
  Industries                                       
 Inc  KLIC.O                                       
                                                   
  ** Shares of AMAT, AEIS, ICHR, LRCX and KLIC drop between 2.2%
and 3% 
    ** The Philadelphia semiconductor index  .SOX  rose nearly
26.3% in June, its best half-year performance since 2000 

 (Reporting by Shreyashi Sanyal in Bengaluru)
 ((RM: Shreyashi.Sanyal.thomsonreuters.com@reuters.net))
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