On The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: 3M (MMM) upgraded to Outperform from Neutral at Credit Suisse... ACE Limited (ACE) upgraded to Buy from Neutral at Goldman... Applied Materials (AMAT) upgraded to Buy from Outperform at CLSA... Autoliv (ALV) upgraded to Sector Perform from Underperform at RBC Capital... Bed Bath & Beyond (BBBY) upgraded to Market Perform at Telsey Advisory... Box (BOX) upgraded to Buy at Canaccord... Chevron (CVX) upgraded to Peer Perform from Underperform at Wolfe Research... CyberArk (CYBR) upgraded to Buy from Neutral at Nomura... Exelon (EXC) upgraded to Buy from Neutral at Guggenheim... General Growth (GGP) upgraded to Outperform from Market Perform at BMO Capital... Intel (INTC) upgraded on positive checks, developments at JMP Securities... KLA-Tencor (KLAC) upgraded to Outperform from Underperform at CLSA... Lam Research (LRCX) upgraded to Buy from Outperform at CLSA... Marvell (MRVL) upgraded to Buy from Hold at Craig-Hallum... Nike (NKE) upgraded on share gains at Sterne Agee CRT... Spirit Airlines (SAVE) upgraded to Outperform from Market Perform at Cowen... United Rentals (URI) upgraded to Neutral from Underperform at BofA/Merrill.
KLA-Tencor upgraded to Outperform from Underperform at CLSA CLSA upgraded KLA-Tencor to Outperform with a $55 price target. Analyst Mark Heller said the Semicap Equipment sector is trading at the biggest discount to the S&P 500 since mid-2012. Heller expects KLA-Tencor to benefit from the ramp of 10nm at the foundries and also from the launch of its new Gen 5 inspection tool in 2016 and views downside as limited.
On The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: Antero Midstream (AM) upgraded to Outperform from Neutral at Credit Suisse... China Southern Airlines (ZNH) upgraded to Neutral from Underperform at Macquarie... DuPont (DD) upgraded to Buy from Neutral at Citi... Entergy (ETR) upgraded to Overweight from Equal Weight at Barclays... HSBC (HSBC) upgraded to Conviction Buy from Buy at Goldman... KLA-Tencor (KLAC) upgraded to Buy from Neutral at Nomura... Total (TOT) upgraded to Buy from Hold at Societe Generale.
KLA-Tencor upgraded to Buy, consensus too low, says Nomura As previously reported, Nomura upgraded KLA-Tencor (KLAC) to Buy from Neutral with a $60 price target. Analyst Romit Shah believes consensus estimates underestimate improving cyclical trends that could drive an inflection in earnings. Shah said capital spending is shifting towards logic and KLA-Tencor recently commented that September orders would be at the upper end of its guided range due to 10nm logic. The analyst expects Intel's (INTC) spending to normalize to $75M-$100M per quarter starting in December from less than $10M in the first half of 2015. Shah sees further earnings leverage from recent headcount cuts and raised December earnings estimates to 82c from 68c and 2016 to $4.25 from $3.68.