- Investor talks and meetings in the past few weeks left Wells Fargo view sentiment as approaching the ‘bad is good’, ‘worse is better’ point, with investors looking for confirmation of a bearish WFE year in C2023 and a repricing on the sell side.
- Analyst Joseph Quatrochi claimed KLA Corp KLAC with an overweight and cut the price target $420 to $360.
- maintain quatrochi ASML Holding NV ASML with an Overweight rating and cut the target price $600 to $510.
- He sees buyside WFE at around $75 billion (before export restrictions; up from around $80 billion in early September).
- However, Quatrochi believes that semi-cap companies will likely wait until January to provide a quantitative WFE forecast for 2023 (similar to previous years).
- It’s poised for a particularly challenging third-quarter 22 semi-cap earnings cycle.
- The analyst sees backorders and order comments as key drivers of semi-cap stocks.
- While he thinks this is a growing talking point, he continues to see those most exposed to cutting-edge foundry and logic as the best to defend in his reporting universe.
- Quatrochi repeated KLAC and ASML as top picks.
- Price promotion: KLAC shares traded 5.27% lower at $297.59 on the last check Monday.
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