The 2014 All-America Research Team: Semiconductors, No. 3: Stacy Rasgon

< The 2014 All-America Research TeamStacy RasgonSanford C. Bernstein & Co.First-place appearances: 0

Total appearances: 3

Team debut: 2012Sanford C. Bernstein & Co.’s Stacy Rasgon, who slips from second place to third, reports on seven U.S. semiconductors names from his base in Los Angeles. Taking a broad view, Rasgon advises that “the sector is bumping into the later innings of this cycle.” As a result, he adds, “structural, secular and/or ‘self-help’ stories are likely to do better.” The analyst has been monitoring such issues as the sustainability of increased personal-computer demand as corporate spending potentially wanes, smartphone-exposed companies’ strategies for dealing with a saturating market and “whether multinationals can really manage to do profitable business in China as the government is more severe in demanding that international vendors play by a new set of rules.” Rasgon’s favorite name in the group is Irvine, California–based Broadcom Corp., which he deems a structural self-help story built around renewed management focus on capital allocation, cash return and shareholder value creation. He maintains a target price of $46 for the stock, which traded in mid-September at $40.28.

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