Susquehanna expects chipmakers to lower Q4 forecast

Power Integrations

10/10/2018 14:58

** Susquehanna reduces PT on various chipmaker stocks to
reflect cyclical risks and increased chances of weaker Q4
forecast
    ** Says that while not precipitous, semiconductor lead-times
contracted in Sept. for first time after 2 years of expansion
    ** Says long-term trends were still up quarter-over-quarter
due to a strong July/August, which could indicate in-line to
slightly better Q3 results
    ** But flags risk to Q4 forecast given decelerating trends
at quarter-end
    ** Shares of Texas Instruments  TXN.O , ON Semiconductor
 ON.O , Microchip Technology  MCHP.O , Power Integrations
 POWI.O , Cypress Semiconductor  CY.O  and Maxim Integrated
Products  MXIM.O  were trading down between 1.8 pct and 2.2 pct
    ** This year, the Philadelphia SE Semiconductor index has
risen 2 pct vs. the broader S&P 500 index's  .SPX  7 pct rise
     Company name        Rating    New PT   Old PT   Stock's
                                                    last close
  Texas Instruments     Positive    $120     $135    $102.87
   ON Semiconductor     Positive     $22     $28      $16.85
       Microchip        Positive     $85     $112     $67.38
     Technology                                     
   Maxim Integrated     Positive     $62     $70      $52.86
       Products                                     
 Power Integrations     Neutral      $65     $70      $57.70
                                                         
       Cypress          Positive     $18      $21     $13.68
    Semiconductor                                   
 
 (Reporting by Amy Caren Daniel in Bengaluru)
 ((Reuters Messaging:
Amy.CarenDaniel.thomsonreuters.com@reuters.net))