Zeev's Turnips Patch-No Politics (ZEEV)

[Jerry Olson]

GOING TO 100 EASY...

Jan-04
08:01 Morgan Stanley raises 2004 capex forecast; previews Semi Equip earnings

Morgan Stanley believes that fundamentals in Semiconductor Capital Equipment have improved significantly since guidance was provided in Oct/Nov, and thus firm sees upside to guidance for most companies in the space; sees a 15-20% increase in bookings across the board, followed by guidance for another 20% bookings growth in 1Q04. Firm sees most of the upside in 4Q03 coming from Asian chipmakers. Raises its 2004 capex forecast to $38.8 bln, up 30% y/y and higher than firm's previous forecast of 20-25%.