Barclays has published analysis on shares
2023.01.23 09:07
Barclays has published analysis on shares
By Kristina Sobol
Budrigannews.com – Superior (NASDAQ) After being upgraded by Barclays from Equalweight to Overweight and given a price target of $85, shares rose prior to the opening.
(NASDAQ) Qualcomm, (NASDAQ) Seagate Technology likewise Skyworks Solutions with price targets of $150, $70, and $125, respectively, were also upgraded from Equalweight to Overweight.
Applied Materials (NASDAQ) simultaneously likewise, KLA Corporation (NASDAQ) Veeco Instruments were downgraded from Equalweight to Underweight. was reclassified as Equalweight from Overweight.
According to analysts, the bank is gradually increasing its negative outlook on semi-capital equipment while simultaneously increasing its positive outlook on the Semiconductor group in its 2024 estimates.
According to the analysts, “…we are Upgrading AMD, QCOM, STX, and materially raising the PT on NVDA,” and “we are more POSITIVE on companies with Data Center, PC, and Handset exposures.” We underestimated the amount of money that wanted to move into semis, so we don’t see the group testing October lows. Although it would have been nice if the group got as cheap as we have seen in previous downturns,
Barclays stated that it will not cheerlead everything, despite its greater sector optimism.
“It’s a new year, but we still have to call it as it is. We don’t see any upside in analog because the correction in ind/auto is just beginning (sorry, no soft landing), and we continue to be negative on the semi-cap space (in fact, we’re doubling down).
We still see WFE down in 2024 despite the expected positive tones through earnings (We are raising our hands now but may not make it on those calls…) “We see the Semi Cap space as now the biggest disconnect in the group and we downgraded three names (AMAT, KLAC, and VECO).
“AMD’s Genoa and Bergamo platforms should drive further share gains vs. INTC,” they stated in reference to AMD. AMD currently holds a very small share of META, but as META spend picks up again in the second half of the year, it should see that share rise. Granite Rapids/Sierra Forest (@ Intel 3) is expected to arrive in 2025, but INTC won’t know for sure until then. We anticipate ASPs of +18% in 2024 and unit share of 20% in 2023 and 23% in 2024.”
Barclays mentioned Skyworks Solutions and Qualcomm as well as Apple (NASDAQ)’s weakness in China. despite the overhang, the bank anticipates market improvement in 2023.
Although the radio frequency (RF) industry has received very little attention for more than a year and a half, it is one of the potential growth markets for 2023. We actually anticipate lower estimates heading into earnings, but given the low valuations (QRVO 12x, SWKS 9x, and QCOM 10x P/CY24E EPS) and the fact that this is one of the few segments in which this may be the LAST cut, we do believe that the lower guidance will be purchased.
