FT. LAUDERDALE, Fla., Nov. 4 /PRNewswire/ -- Newbridge Securities Corporation announces the initiation of coverage of the Semiconductor Equipment and Materials Sector. The coverage launch on October 29, 2009, authored by Tim Summers, Senior Vice President, included a Semiconductor Equipment Industry overview and coverage of five individual companies. The five companies now under coverage are; Advanced Energy Industries Inc. (AEIS, Buy-rated, $15 price target), Applied Materials Inc. (AMAT, Buy-rated, $17 price target), Brooks Automation Inc. (BRKS, Neutral-rated), MKS Instruments, Inc. (MKSI, Buy-rated, $23 price target) and Ultra Clean Holdings Inc. (UCTT, Buy-rated $10 price target).
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Outlook - Significant Improvement Exiting the Year, Expect Further Gains in 2010
According to Tim, "We believe the semiconductor equipment industry has entered a cyclical recovery from its disastrous 2007-1Q09 downturn. The downturn saw annual semiconductor industry revenue growth slow to low single digits in both 2007 and 2008 (vs. a long-term average annual growth rate of 10%) and then drop an estimated 18% this year. During this period, semiconductor capital spending declined over 50% and was the worst industry downturn since 2001-2002. While we are forecasting semiconductor industry capital spending to decline about 40% in 2009 on an annual basis, we believe industry orders hit bottom in 1Q09 and capital spending is now rising, albeit from a very low base. Given the severity of the downturn, we believe this particular cyclical recovery could be quite strong, especially in the early stages."
Gary Spivak, Director of Equity Research, stated: "As the overall economy shows some signs of strengthening, we believe that the Technology Sector will be a leader in the recovery and that the semiconductor equipment sector has historically been a strong performer during times of recovery. Tim is an experienced analyst who has followed this industry through numerous cycles. This sets him apart from many of his competitors."
About Newbridge
Newbridge Securities Corporation is a full-service securities broker-dealer and investment bank with corporate offices in Florida and locations throughout the United States. Since 2000, the Firm has served a broad range of individual and corporate clients, with a focus on providing quality products, services and advice.
For more information on Newbridge, please visit our public web-site at www.newbridgesecurities.com
SOURCE Newbridge Securities Corporation
