Credit Suisse Boosts Varian Semi, Applied Materials On Optimism For Q4 Orders

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Includes: AMAT, VSEA
by: Eric Savitz

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:
veas amat chart