Seeking Alpha

A roundup of tech ratings changes

  • Intel (INTC) has been cut to Neutral, and Nvidia (NVDA) to Underperform, by Macquarie. Intel's Q3 report arrives on Tuesday. Intel -0.6% premarket, Nvidia -0.9%.
  • Micron (MU) has been cut to Underperform by Wells Fargo following its FQ4 results (I, II) and FQ1 pricing guidance. Shares -2.1%.
  • Synaptics (SYNA) has been cut to Neutral by JPMorgan two days after announcing the Validity Sensors deal and forecasting strong FQ1 sales. Shares -1.5%.
  • Corning (GLW) has been cut to Neutral by Piper. Shares -1%.
  • Iron Mountain (IRM) has been cut to Underweight by Barclays a day after announcing CFO Brian McKeon is leaving. Shares -2.2%.
  • LG Display (LPL) has been upgraded to Buy by Citi.
  • Diodes (DIOD) has been upgraded to Buy by Longbow.
Comments (15)
  • I'm a buyer of IRM. The Barclays analyst believes they can't convert to a REIT which shows the analyst has no understanding of REIT world.
    11 Oct 2013, 10:25 AM Reply Like
  • Mutual-


    Isn't IRM the company that leases its facilities, rather than owning the dirt under the buildings, hence, some in government question how it can qualify as an eREIT?




    11 Oct 2013, 10:35 AM Reply Like
  • RW-


    IRM does lease a lot of its facilities, however, the structural components in the building IRM puts in place is what qualifies. The main issue has the been the racks in IRM's facilities. There has been some debate on whether it constitutes real property. IRM has Big 4 firm(s) and DC/NY lawyers presenting IRM's argument to the IRS. Add that some analysts agree it is real property under the current law, and you have an outlier at Barclay's who is nothing but a Cramer (someone who says to buy at all time highs and vice versa. Ex: Barclays PT of $41 when IRM was at 52 week highs. PT $23 at 52 week lows.)
    11 Oct 2013, 02:34 PM Reply Like
  • MFM-


    I personally find it hard to believe that structural components inside the building, along with facilities such as but limited to racks would qualify.


    If the above were true, then wouldn't the major chains that lease from "O" and "NNN" be able to claim leasehold improvements qualify the tenant (drug chains, supermarkets, etc.) to be simultaneously an eREIT along with the landloard?


    Owing the land is why DLR qualifies, IMO.


    Where's Brad Thomas to help us on this one?


    11 Oct 2013, 08:39 PM Reply Like
  • "I personally find it hard to believe that structural components inside the building, along with facilities such as but limited to racks would qualify."


    Well, I'm a REIT Tax expert (and get paid for it). Brad is an expert on the overall industry and not tax specific issues. If you're questioning my expertise, try doing some due diligence on IRM and you'll see the racks are the issue.


    And owning the land is not what qualifies DLR. It's the fact they derive rental income. You don't have to own land to be a REIT.
    14 Oct 2013, 12:25 PM Reply Like
  • MFM-


    I was not challenging your professional knowledge. Please re-read the quote that you cited. I merely stated that I had a problem with renting racks ( to the exclusion of the building, land, etc. ).


    Those with more authority than I possess will sooner or later make a ruling and we'll know where IRM stands (until an appeal gets filed).




    14 Oct 2013, 04:36 PM Reply Like
  • It is mildly amazing that you choose to put Wells Fargo's downgrade of Micron in your "Roundup" when (a) they have been consistently wrong about Micron over the past year, and (b) there are numerous positive comments following the report that you ignore. Here is a sampling of those positive comments that I just picked up from Yahoo plus one other source:
    RBC--Micron reports strong results, buy
    Stifel--Micron-Elpida combination has exceeded expectations
    Jefferies--Micron price target raised to 30 from 25.
    Merrill--Buy recommendation reiterated, price target raised to 20.5 from 18
    UBS--price target raised to 23 from 18
    11 Oct 2013, 10:41 AM Reply Like
  • The point of the roundup is to cover ratings changes, not PT changes. Nor is to render judgment on the value of a particular call. Nothing remotely "amazing" about the fact Wells' downgrade was mentioned.
    11 Oct 2013, 10:46 AM Reply Like
  • Considering Wells Fargo's opinion largely conflicts with other analysts I_am_ seeker raises a valid point. As written, your notes fail to indicate Wells appears to be in the minority.
    11 Oct 2013, 11:14 AM Reply Like
  • Please reread what I just wrote. The point of a ratings roundup is to make note of upgrades, downgrades, and coverage initiations, not PT changes. Those might be covered in another post.


    Whether a particular ratings change puts an analyst in the "minority" is entirely besides the point. In this case, that's true not only for Micron, but also for Nvidia and Iron Mountain.
    11 Oct 2013, 11:32 AM Reply Like
  • Eric:


    In other words, SA is passing along to us, the readers, the opinions of analysts. SA is not rendering an opinion on how correct or incorrect an analyst might be?


    Yes / No?




    11 Oct 2013, 11:42 AM Reply Like
  • Exactly. An opinion isn't going to be rendered on whether an analyst's opinion is "correct" or not. Maybe the performance of an analyst's previous call will be noted, but that's something very different.


    Obviously longs and shorts are going to have very different views on the "correctness" of a particular call. I doubt any Micron bulls would be complaining about Wells being mentioned if the firm upgraded the stock.
    11 Oct 2013, 06:41 PM Reply Like
  • Why would Macquarie choose to cut INTC to neutral right after IDC released positive estimates for PC sales in US?
    11 Oct 2013, 11:34 AM Reply Like
  • because US PC sales estimates are not of any particular importance for the stock performance ?
    11 Oct 2013, 03:20 PM Reply Like
  • Fastestxc-


    Beats me. Positive news equals a downgrade? Must be new math.


    11 Oct 2013, 08:41 PM Reply Like
DJIA (DIA) S&P 500 (SPY)