Ratings on (NRGY) (NSM) (QGEN) (RIMM) Downgraded

Ratings on shares of Inergy (NASDAQ: NRGY), National Semiconductor Corp. (NYSE: NSM), Qiagen (NASDAQ: QGEN) and Research In Motion (NASDAQ: RIMM) were downgraded by analysts.

Raymond James (NYSE:RJF) downgraded Inergy (NRGY) from a “buy” rating to a “market perform” rating.

FBR Capital downgraded National Semiconductor Corp. (NSM) from an “outperform” rating to a “market perform” rating. They have a price target of $25.00 on the company, up from $20.00.

Macquarie downgraded Qiagen (QGEN) to a “neutral” rating.

Societe Generale downgraded Research In Motion (RIMM) from a “buy” rating to a “hold” rating.

Dividend Yields for (XLNX) (AMAT) (NSM) (TXN) (ALTR)

Indicated dividend yields for Standard & Poor's 500 Index companies Xilinx Inc (XLNX), Applied Materials Inc (AMAT), National Semiconductor Corp (NSM), Texas Instruments Inc (TXN) and Altera Corp (ALTR) .

These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.

Xilinx Inc (XLNX) has a dividend yield of 2.18 percent on a declared dividend of $0.19. The payout ratio is 26.4 percent.

Applied Materials Inc (AMAT) has a dividend yield of 2.04 percent on a declared dividend of $0.08. The payout ratio is 18.2 percent.

National Semiconductor Corp (NSM) has a dividend yield of 3.36 percent on a declared dividend of $0.10. The payout ratio is 40.7 percent.

Texas Instruments Inc (TXN) has a dividend yield of 1.46 percent on a declared dividend of $0.13. The payout ratio is 22.8 percent.

Altera Corp (ALTR) has a dividend yield of 0.49 percent on a declared dividend of $0.06. The payout ratio is 8.6 percent.

Intel (INTC) (MSFT) (HPQ) Boosted on Texas Instruments (TXN), National Semi (NSM) Deal

The news that Texas Instruments (NYSE:TXN) offered National Semiconductor (NYSE:NSM) $6.5 billion to acquire the company gave tech stocks a jump today, as shares of Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), Hewlett-Packard (NYSE:HPQ) were were all trading up on the day.

Other companies riding the news were Intersil (NASDAQ:ISIL), Semtech (NASDAQ:SMTC), Micrel (NASDAQ:MCRL), which were all enjoying strong gains on the day.

Texas Instruments and National Semiconductor are also benefiting from the market liking the deal, with both companies pushing up today, with National Semiconductor up over 71 percent.

TI (TXN) Buys National Semiconductor (NSM)

Two of the leading companies manufacturing analog chips are apparently become one, as Texas Instruments (NYSE:TXN) is reportedly acquiring rival National Semiconductor (NYSE:NSM) for $6.5 billion.

TI's CEO Rich Templeton said, "This acquisition is about strength and growth. National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth."

With the fierce competition and pricing in the sector, expectations are the deal should clear regulatory scrutiny.

The transaction will be all cash, and Texas Instruments will pay $25 a share for the company.

Texas Instruments was down in after hours trading, falling to $33.54, down $0.53, or 1.55 percent. National Semiconductor soared on the news, rising to $24.30, up $10.23, or 72.71 percent.

National Semi (NSM), Micron (MU), LSI (LSI), Texas Instruments (TXN), Xilinx (XLNX) Lead Friday Teck Rally

Tech stocks jumped Friday, led by National Semi (NSM), Micron (MU), LSI (LSI), Texas Instruments (TXN) and Xilinx (XLNX), among other chip stocks, ending the session with gains across the sector.

Earlier, the tech sector mirrored the broader market’s uncertainty in the wake of an 8.9-magnitude earthquake that rattled Japan.

National Semi (NSM) rose 54 cents, or almost 4%, to close at $14.70 after the chip maker’s fourth-quarter revenue forecast fell in line with analysts’ estimates.

Late Thursday, National Semi said it expects quarterly sales of $360 million to $370 million, while analysts surveyed by Thomson Reuters had forecast revenue of $367 million.

Micron closed Friday at $10.24, up $0.31, or 3.17 percent. LSI closed at $6.60, gaining $0.28, or 4.43 percent. Texas Instruments ended the session at $34.39, up $0.14, or 0.41 percent. Xilinx closed at $32.33, up $0.43, or 1.35 percent.




Source

Wells (WFC) Top Semi Picks are Intel (INTC), Qualcomm (QCOM), Linear Technology (LLTC), Analog Devices (ADI), Xilinx (XLNX), Altera (ALTR)

Even though Wells Fargo (NYSE:WFC) chip analyst David Wong downgraded his outlook on semiconductor stocks from "Overweight," he still likes Intel (INTC), Qualcomm (QCOM), Linear Technology (LLTC), Analog Devices (ADI), Xilinx (XLNX) and Altera (ALTR) in the sector.

Wong said, “We continue to expect solid semiconductor industry growth in 2011, of 10-15%, with many chip companies maintaining the high levels of profitability demonstrated in 2010.”

“The trend for worldwide semiconductor sales continues to track roughly in line with to somewhat above our expectations,” added Wong, who also said inventory levels are "appropriate" at this time.

Wong considers less desirable Broadcom (BRCM), Advanced Micro Devices (AMD), Microsemi (MSCC) and Micron Technology (MU), citing high valuations, low profit and company-specific risk.

Wong maintains Market Perform ratings on Maxim (MXIM), Texas Instruments (TXN) and National Semiconductor (NSM).

Semiconductor's Brocade (BRCD), ON Semi (ONNN) and National (NSM) Jumping Today

Semicondutors Brocade Communications Systems, Inc. (NASDAQ:BRCD), ON Semiconductor Corp. (NASDAQ:ONNN) and National Semiconductor Corporation (NYSE:NSM) are all trading positive today, led by Brocade, which has enjoyed the largest gains in the semi sector today.

Brocade Communications Systems, Inc. made the biggest move in anticipation of its earnings report after the market closes. Brocade was trading at $6.03, gaining $0.31, or 5.42 percent, as of 2:26 PM EST.

ON Semiconductor Corp. was trading at $11.81, gaining $0.18, or 1.55 percent.

National Semiconductor Corporation was at $15.81, up $0.32, or 2.07 percent.

Maxim (Nasdaq:MXIM), Marvell (Nasdaq:MRVL), ONNN (Nasdaq:ONNN), National Semi (NYSE:NSM), Fairchild (NYSE:FCS), Int'l Rectifier (NYSE:IRF), Microsemi (Nasdaq:MSCC), Broadcom (Nasdaq:BRCM) Have Most Semi Upside

With earnings reports from a number of semiconductor companies to be released next week, FBR focused on a number of companies in the sector, saying Maxim (Nasdaq:MXIM), Marvell (Nasdaq:MRVL), ON Semiconductor (Nasdaq:ONNN), National Semi (NYSE:NSM), Fairchild (NYSE:FCS), Int'l Rectifier (NYSE:IRF), Microsemi (Nasdaq:MSCC) and Broadcom (Nasdaq:BRCM) have the most upside potential of the group.

FBR says, "Several chip firms report earnings over the next week, including Linear Technology (Nasdaq:LLTC)(UP) Tuesday AMC, Fairchild Semi (FCS)(OP), Thursday BMO, Maxim Integrated (MXIM)(OP) Thursday AMC, AMD (NYSE: AMD)(MP) Thursday AMC, and Texas Instruments (NYSE: TXN)(OP) Monday AMC. For near-term focused investors, we think FCS and MXIM could see solid share price appreciation following beat and raise results, with TXN also possibly in that camp (though our conviction is slightly lower). While both MXIM and FCS have appreciated meaningfully in the near term, robust results and still-attractive stock valuations keep us favorable near term. For AMD, while the firm could post solid 1Q11 guidance, the departure of former CEO Dirk Meyer is likely to weigh on the stock and overshadow any near-term results until a full-time successor is found. For Linear, we think the firm's core business remains solid; however, several headwinds are present in the March quarter, including (1) a possible loss of one of its two iPad sockets (we estimate content going from $2 to $1) and some iPad seasonality in March, driving a roughly $10M revenue headwind in total (three revenue points), and (2) tougher comparisons against the firm's 14-week December quarter (about four revenue points). For Texas Instruments, we think the firm will report robust results and guidance, and the stock could possibly rally, though we prefer MXIM (growth) or NSM (value) versus TXN currently. Finally, for ON Semi (ONNN–OP), we are raising our 4Q10 revenue and EPS estimates slightly toward the high end of guidance, embedding Sanyo into our financial estimates, and raising our price target from $15 to $16."

"While the group could see some profit-taking following such a move higher, we do expect some beat and raise 4Q10 results and thus think any sell-off will be short term in nature and a likely buying opportunity for later in 2011. Our favorite stocks for upside include Maxim (Nasdaq: MXIM), Marvell (MRVL), ONNN, National Semi (NSM), Fairchild (FCS), Int'l Rectifier (IRF), Microsemi (MSCC), and Broadcom (BRCM)."

Gleacher Likes Linear Tech (Nasdaq:LLTC) Maxim (Nasdaq:MXIM) Long- Term in Analog, Monlithic Power (Nasdaq:MPWR) Short Term

Previewing the ending of the quarter for analog, Gleacher said they like Linear Tech (Nasdaq:LLTC) Maxim (Nasdaq:MXIM), and in the short term, Monlithic Power (Nasdaq:MPWR).

Gleacher noted, "Today we are previewing our December quarter ending Analog coverage group including Texas Instruments (NYSE:TXN) (Buy), Intersil (Nasdaq:ISIL) (Neutral), Linear Tech (LLTC) (Buy), Monlithic Power (MPWR) (Neutral), Micrel (Nasdaq:MCRL) (Neutral) and Maxim (MXIM) (Buy). While our top picks longer-term are LLTC and MXIM, we recognize that MPWR perhaps has greater upside potential through Q4 earnings, should the company post beat and raise results (as we suspect), as Street CY11 estimates have fallen precipitously since CQ3 earnings. Note: We also recommend National Semi (NYSE:NSM) and Analog Devices (NYSE:ADI) in the Analog space."

LLTC was trading at $34.90, up $0.09, or 0.25 percent, as of 2:19 PM EST. MXIM was trading at $25.75, up $0.38, or 1.50 percent. MPWR was at $15.98, down $0.05, or 0.31 percent.

National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM), Marvell (Nasdaq:MRVL) May be Defensive in Short Term

In the short term FBR Capital says tehy are nervous over the vertical price action even though the sector looks somewhat healthy. Companies they see on the defensive are National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM) and Marvell (Nasdaq:MRVL).

FBR said, "We remain constructive on the chip sector for 2011 and think that semiconductor stocks can appreciate higher over the course of the year, given (1) robust end demand for smartphones, tablets, infrastructure equipment, and industrial/automotive applications; (2) higher chip content per device in handsets, automobiles, and others; (3) still-reasonable channel inventories; (4) still-limited capacity growth, and (5) reasonably high earnings power. That said, chip stocks have had a powerful move higher since Labor Day and, thus, could be subject to profit taking, a pullback, or, at the very least, some digesting to start the year. While we continue to believe 2010–2011 is the sector's first-ever "soft landing," we do see some revenue- and EPS-related "ship ahead" risks still for chip firms, particularly in the industrial and communications/networking sectors, and expect some misses from chip firms in these sectors in 1H11, though the magnitude of these resets should be modest. Sector valuations are now appropriate but not downright attractive anymore, given the group's move higher. That said, the one risk to protecting profits is investors' recent actions to reallocate funds from bonds to equities, potentially making any action to protect profits too early. Stocks that could be defensive in the near term include National Semi (NYSE:NSM), Intel (Nasdaq:INTC), AMD (NYSE:AMD), Broadcom (Nasdaq:BRCM), and Marvell (Nasdaq:MRVL). Stocks that may have moved upwards too far too fast, near term, include Linear (Nasdaq:LLTC), Silicon Labs (Nasdaq:SLAB), Atmel (Nasdaq:ATML) and, possibly, Fairchild (NYSE:FCS). For 2011 in aggregate, we still see material upside in Outperform-rated stocks such as QUALCOMM (Nasdaq:QCOM), BRCM, Atheros (Nasdaq:ATHR), LSI Corp (NYSE:LSI), NSM, On Semi (Nasdaq:ONNN), FCS, and Microsemi (Nasdaq:MSCC)."

National Semiconductor closed Tuesday at $13.85, down $0.04, or 0.29 percent. Intel closed at $21.15, gaining $0.30, or 1.44 percent. AMD closed at $8.77, up $0.30, or 3.54 percent. Broadcom closed at $43.19, losing $1.04, or 2.36 percent. Marvell closed at $18.12, down $0.42, or 2.26 percent.

QUALCOMM (Nasdaq:QCOM), Broadcom (Nasdaq:BRCM), Atheros (Nasdaq:ATHR), LSI (NYSE:LSI), National Semi (NYSE:NSM), ON Semi (Nasdaq:ONNN), Fairchild (NYSE:FCS) Look Good Going into 2011

FBR Capital gave their outlook for the chip sector going into 2011, and still see it performing strongly, although probably less than the last several quarters. Favorites in the sector include QUALCOMM (Nasdaq:QCOM), Broadcom (Nasdaq:BRCM), Atheros (Nasdaq:ATHR), LSI (NYSE:LSI), National Semiconductor (NYSE:NSM), ON Semi (Nasdaq:ONNN), Fairchild (NYSE:FCS) and Microsemi (Nasdaq:MSCC), all of which have an "Outperform" rating on them from FBR.

FBR said, "We remain constructive on the chip sector for 2011 and think that semiconductor stocks can appreciate higher over the course of the year given (1) robust end demand for smartphones, tablets, infrastructure equipment, and industrial/automotive applications; (2) higher chip content per device in handsets, automobiles, and others; (3) still-reasonable channel inventories; (4) still-limited capacity growth, and (5) reasonably high earnings power. That said, chip stocks have had a powerful move higher since September, and thus could be subject to profit taking, a pullback, or at the very least some digesting to start the year. Indeed, 2010 saw a continuation of the substantial recovery that began in 2H09, and we see these positive demand trends continuing into 2011. While the chip cycle did "over-heat" some in 2010, likely driving 2011 semiconductor revenue growth to track flattish year over year given the 5–10 points of revenue replenishment good news that does not repeat in 2011, we still believe this is the sector's first ever "soft-landing." We do see some revenue- and EPS-related "ship-ahead" risks still for chip firms, particularly in the industrial and communications/networking sectors, and expect some misses from chip firms in these sectors in 1H11, though the magnitude of these resets should be modest. Valuations remain generally attractive for the group (though not as attractive as two to three quarters ago) and we see material upside in Outperform-rated stocks like QUALCOMM, Broadcom, Atheros, LSI, National Semi, ON Semi, Fairchild, and Microsemi."

QUALCOMM closed Tuesday at $49.18, up $0.06, or 0.13 percent. Broadcom closed at $44.98, down $0.72, or 1.58 percent. Atheros closed at $33.94, down $0.62, or 1.79 percent. LSI ended the day at $5.93, up $0.02, or 0.34 percent. National Semiconductor closed at $13.64, up $0.06, or 0.44 percent. Fairchild ended the session at $15.14, down $0.33, or 2.13 percent. Microsemi closed Tuesday at $23.59, down $0.71, or 2.92 percent.

Apple (Nasdaq:AAPL) Cuts iPad, iPhone Production in 1st Quarter

Citing their contacts, FBR Capital said they're seeing Apple (Nasdaq:AAPL) cutting production for its iPhones and iPads for the first quarter 2011, based on checks as of November 23.

FBR said, "We have an interim update into the Apple (Nasdaq:AAPL) supply chain with implications for Broadcom (Nasdaq:BRCM) (OP), QUALCOMM (Nasdaq:QCOM) (OP), and Linear Technology (Nasdaq:LLTC) (UP). In short, our contacts saw calendar 1Q'11 production cuts for both iPhones and iPads versus our November 23 checks. For the iPhone, 1Q'11 production is now set at 16.1M units, a 4% negative revision versus our prior checks, but still up 7% QOQ. We hear some iPad cannibalization impacts could be driving the build reduction, as well as some customers (especially 3GS customers) choosing to wait until the new iPhone 5 is launched this summer. Strong end demand is still driving sequential growth in 1Q iPhone production, completely bucking normal seasonality. For the iPad, we believe 1Q'11 production is now set at 6.0M units, a 30% negative revision versus our prior checks, and now down 21% QOQ. We hear Apple will clear out iPad inventory to make way for the iPad 2, with initial production beginning in 1Q'11. For the iPhone and iPad, strong sell-through could drive the 1Q'11 production forecasts higher from here. For the sector, chip stocks have had a powerful move higher since September 1 and, while the rally could continue through CES in early January, we think some investors could take profits in the near term. Indeed, we continue to think the sector is not totally out of the woods yet, regarding previously discussed ship-ahead risks, as downstream supply chain participants no longer replenish inventories and could de-stock. In our 3Q10 inventory analysis (published 11/17/10), we specifically called out inventory dollar growth at distributors (+24% QOQ) and EMS firms (+12% QOQ) as the worst offenders. We remain constructive on chips for 2011, given very robust end-demand trends, still low capacity, and high earnings power, though we think chip stocks could digest gains early in the year as some choppiness creeps into estimates. Defensive chip stocks currently include National Semi (NYSE:NSM),Intel (Nasdaq:INTC), Microsemi (Nasdaq:MSCC), and QCOM (given a robust Apple ramp likely in 1H11)."

Apple closed Monday at $321.67, up $1.11, or 0.35 percent.

National Semiconductor (NYSE:NSM) Revenue to be Pressured

National Semiconductor (NYSE:NSM) has been successful at reducing costs within the business, but revenue will continue to be challenged, and Gleacher recommends to buy on weakness for expected lower guidance.

Gleacher said, "Management continues to execute on cost controls, but end-market exposure and market share issues likely put these results at the lower-end of industry revenue results. We continue to view the stock as a value play in the analog market; as multiples in the sector, then expand NSM, which trades at a discount to peers, should get pulled up. Estimate cuts as a result of the guide down do look to be limited to <10%, which can be offset by a higher applied multiple. We continue to believe the ‘right call’ is to buy weakness that guidance is likely to create."

Gleacher & Co. maintains a "Buy" National Semiconductor Corp., which closed Friday at $13.81, down $1.16, or 7.75 percent. They have a price target of $18 on them, lowering it from $19.

National Semiconductor (NYSE:NSM) Positioned Strong for 2011

There may be some short-term pain for National Semiconductor (NYSE:NSM), but going into 2011 they seem positioned well for growth.

FBR noted, "Thursday, National reported weak calendar 4Q revenues and upside EPS, and it guided calendar 1Q revenues to fall 10% QOQ, worse than Street estimates, as wireless handset market share losses, customer market share losses, and some semiconductor cycle impacts drove near-term weakness. Indeed, our recent assessment of global supply chain inventories suggested that downstream inventory growth (dollars +9.5% QOQ in 3Q) would give way to an eventual shipment-based reset for chip firms through 1H11, with some of this now playing out...We are cutting our calendar 2011 EPS estimate from $1.40 to $1.25, introducing our calendar 2012 estimate of $1.40, and maintaining our rating and price target, based on a 14x target P/E multiple (2011, including stock compensation), seemingly appropriate, given National’s sustainable business model, margin profile, and peer valuations."

FBR Capital maintains an "Outperform" on National Semiconductor, which closed Friday at $13.81, down $1.16, or 7.75 percent. FBR has a price target of $20 on them.

Volume was about 4 times the daily 3-month average.

National Semiconductor (NYSE:NSM) Struggling with Declining Bookings

National Semiconductor (NYSE:NSM) guidance is expected to be lower in the next quarter, according to Gleacher & Co., citing challenges in bookings from wireless and distribution markets.

Gleacher said, "We believe NSM likely turned in a quarter closer to the low-end of its $390-415mil guidance range (GLCH at $396mil, the Street at $400mil) and could be in-store to disappoint on its February guidance (GLCH $376mil, Street $382mil) as management adjusts for overall weakness in bookings from both distribution and wireless "markets."

Still, Gleacher maintains a "Buy" rating on National, which closed Friday at $14.77, up by $0.66, or 4.68 percent. They have a price target on them of $19.

Volume was almost double the normal 3-month daily average.