BofA downgraded chip equipment makers 10.06.2003 1

BofA downgraded chip equipment makers 10.06.2003 14:32    Headlines


  Analyst Mark Fitzgerald at Banc of America downgraded a number of chip
equipment makers, saying he was not optimistic that the companies' earnings
power into 2004 could sustain the current rally in the sector. He cut Applied
Materials , KLA-Tencor , Novellus Systems  and Lam Research  to "neutral" from
"buy," and Credence Systems  to "sell" from "neutral." "The rally in the
semi-equipment space over the last several months is probably anticipating an
industry recovery fueled by a turn in the economy," Fitzgerald said in a note to
clients. "Slower growth, heightened competition and a lack of new applications
suggest to us that industry profitability will fall short of the 1990s cycles."
AMAT is slipping 27 cents to $15.55, KLAC is losing 34 cents to $47.66, NVLS is
easing 21 cents to $37.39, LRCX is 25 cents lighter at $17.99 and CMOS is 21
cents lower at $8.78 in pre-open trading.
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Merrill downgrades Colgate, Gillette on price 10.06.2003 14:36    Headlines


   Merrill Lynch downgraded Colgate , Gillette , and Alberto-Culver  to
"neutral" from "buy," but it maintained its "buy" ratings on Avon , Procter &
Gamble , Estee Lauder  and Newell . The moves came as Merrill reviewed its
ratings on the household products sector. Analyst Carol Warner Wilke noted the
sector has outperfomred the broader market for nearly 3.5 years. "Recently,
however, the group's appreciation has lagged that of the broader market, as
interests seem to have shifted away from more defensive names," she said in a
note to clients. She said fundamentals in the group are strong, but  with the
appreciation that many stocks have had year-to-date, additional double digit
appreciation over the next 12 months "may not be realistic."
Colgate, Gillette, and Alberto-Culver are "on track with their business plans,"
she said. Shares of Colgate rose 17 cents to $58.77 on Monday. Gillette added 9
cents to $33.43 and Alberto-Culver dipped 5 cents to $48.90.
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