| For a fourth year in a row — and the sixth time in nine years — James Covello leads the lineup. The Goldman, Sachs & Co. analyst, who also claims a runner-up spot in Semiconductors, is “fearless in making calls on even large-cap names that others are afraid to question,” notes one fan. “We came into the year with a cautious sector rating and then, after a sharp sell-off in the stocks, we upgraded the sector to our current neutral view in May,” says Covello, 39. “Fundamentals will continue to be weak for the next several quarters, as Intel Corp. and the foundries need to reduce their current capital expenditure levels because of excess supply.” In the wake of the correction, he adds, most stocks have priced in this weakness. Covello upgraded Santa Clara, California–based Applied Materials from sell to neutral in May, when the price dipped to $10.46, and then raised it to buy in early August, at $11.78, reasoning that a new executive team would help boost performance. The shares were trading at $11.69 at the end of that month. |
Technology, Media & Telecommunications – Semiconductor Capital Equipment: First
October 16, 2012
