Credit Suisse’s Satya Kumar Tuesday raised his rating on Varian Semiconductor Equipment (NASDAQ:VSEA) to Neutral from Underperform, and raised his target to $46 from $41.
Kumar says orders for the fourth quarter “are shaping up better” as NAND memory capacity conversion from 200 mm wafers to 300 mm wafers “is providing a second wind to orders.”
Kumar boosted his 2008 EPS estimate to $2.41 from $1.76.
Meanwhile, citing similar logic, Kumar also raised his price target on Applied Materials (NASDAQ:AMAT) to $25 from $21.
VSEA vs. AMAT 1-yr chart: