The 2013 All-America Research Team: Semiconductor Capital Equipment, No. 1: James Covello

The 40-year-old analyst covers 17 companies and is neutral on the sector overall.

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James Covello
Goldman, Sachs & Co.

First-place appearances: 7

Total appearances: 12

Analyst debut: 2002

Master of the realm for a fifth year in a row, Goldman, Sachs & Co.’s James Covello “has excellent big-picture and stock-driven thoughts about this space,” avers one fan. The 40-year-old analyst covers 17 companies and is neutral on the sector overall. He forecasts that weak capital expenditures by Intel Corp. over the next 12 months will continue to partially offset increased spending by manufacturers of flash memory chips. Regarding particular stocks, last August, Covello followed up his May 2012 upgrade of Applied Materials from sell to neutral with a boost to buy, at $10.98, based on his growing confidence in the Santa Clara, California–based company’s new management. Since he expects the stock to be the best performer in his portfolio, he’s advising clients to “aggressively add to positions.” So far, so good. The shares advanced 36.7 percent through August 2013, against a sector gain of 3.3 percent. He also has urged buying U.K.-based vacuum maker Edwards Group since it went public on the Nasdaq Stock Market in May 2012, at $8.57, deeming the shares undervalued. In August the company announced it had agreed to be acquired by Swedish industrial giant Atlas Copco, at a price of up to $10.50 per share. Edwards’s stock closed that day at $10. Covello also captures a runner-up position in Semiconductors. — Pam Baker

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