Citigroup's Terence Whalen picks up coverage of semi equipment stocks and raises KLA Tencor...

|By:, SA News Editor

Citigroup's Terence Whalen picks up coverage of semi equipment stocks and raises KLA Tencor (KLAC +1.2%) and Novellus (NVLS +3.1%) to Buy from Neutral, while cutting FormFactor (FORM -2.6%) to Neutral. Investors “have yet to correctly quantify escalating capital intensity” in the chip manufacturing business, he asserts, expecting wafer fab equipment spending will near $36B in three years.