- Raymond James is out negative on chip stocks for the second time in as many weeks with analyst Chris Caso saying “it’s too early to call a bottom” but still “cutting estimates across much of the space.”
- On September 25, the firm downgraded several semi stocks citing the sector entering a “cyclical downturn.”
- Caso: “Since we downgraded the group … stock prices have fallen sharply, the volume of negativity from the rest of the Street has increased markedly, and we believe most investors now expect some degree of estimate cuts.”
- Sign of the bottom? Caso says to look for positive stock price action on negative announcements, which could indicate the bottom is near.
- Caso “wouldn’t be surprised to be buying semis again in the November-March time frame.”
- The analyst’s 2019 earnings estimate cuts include Intel (NASDAQ:INTC), Analog Devices (NASDAQ:ADI), Microchip (NASDAQ:MCHP), ON Semiconductor (NASDAQ:ON), Monolithic Power (NASDAQ:MPWR), Maxim Integrated (NASDAQ:MXIM), and Texas Instruments (NYSE:TXN).
- Previously: Raymond James tech downgrades include Intel, Analog Devices (Sept. 25)
- Previously: Raymond James downgrades Intel on 10nm delay (Sept. 25)