Stifel is out with a note attributing memory push-outs to Samsung (OTC:SSNNF, OTC:SSNLF), primarily on the 3D NAND front. The firm lowers its 2018 WFE forecast, but is still tracking toward a record year and has raised the 2019 WFE estimates.
Stifel thinks overall supply/demand trends remain healthy and notes that large-cap companies like Applied Materials (AMAT -1.5%), KLA-Tencor (KLAC -1.9%), and Lam Research (LRCX -2.2%) have seen improvements in business models and cash flow generation.
The firm also sees small cap companies benefitting through the ups and downs of the spending environment with MKS Instruments (MKSI -1.8%), Advanced Energy (AEIS -1.5%), Ichor Holdings (ICHR -1.7%), and Ultra Clean (UCTT -0.2%) poised to deliver healthy profits even with a quarter or two of revenue declines.
Price target adjustments: MKS Instruments from $147 to $155, Ichor Holdings from $44 to $48, and Ultra Clean from $27 to $30.
Other semiconductor equipment stocks that could move on the note: Applied Materials (AMAT -1.5%), ASML (ASML -2.6%), Brooks Automation (BRKS -5.8%), AXT (AXTI), Nanometrics (NANO -2.5%), Nova Measuring Instruments (NVMI -1.6%), Axcelis Technologies (ACLS -0.5%), Ambarella (AMBA -1.2%), Universal Display (OLED -2.1%), Synopsys (SNPS -1.4%), and Teradyne (TER -1.5%).
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