Abet Chichi2

[bob3]

Barron's: GS cuts many in Tech Sector

http://blogs.barrons.com/techtraderdaily/2007/11/30/goldman-turns-wary-on-tech-sector-cuts-estimates-targets-for-dozens-of-stocks/?mod=yahoobarrons

November 30, 2007, 4:25 pm
Goldman Turns Wary On Tech Sector; Cuts Estimates, Targets For Dozens Of Stocks
Posted by Eric Savitz
Wary comments by Goldman Sachs this morning on the outlook for enterprise technology spending are apparently weighing on tech shares.

Goldman analysts Jim Covello, Sarah Friar and Derek Bingham wrote that they have become “incrementally more cautious on tech fundamentals given the current macroeconomic backdrop,” which suggests soft capital spending in 2008, in particular for the U.S. “We believe CIOs may delay their purchases in the early part of 2008,”they wrote.

The Goldman analysts write that “this is not a call to sell all tech stocks,” and that “while there is likely little upside for some areas of tech,” in particular software, on which the firm turned cautious earlier this week, other areas have underperformed this year, including hardware and semis, and “already likely reflect the pending fundamental weakness.”

That said, Goldman reduced estimates and cut price price targets for many names, “with particular focus on companies with large enterprise exposure and significant dependence on the U.S. consumer.”

The list of companies affected by today’s Goldman call is long:

In the communications sector, they cut estimates and/or price targets for:

Netgear
Corning
Cisco
Nortel
Aruba
Juniper
In the hardware sector, Goldman cut estimates and/or price targets for:

Dell
Directed Electronics
EMC
Emulex
IBM
Intevac
Isilon
Lexmark
Network Appliance
Sun Microsystems
Brocade
Payment processing companies affected by estimate and/or price target changes include:

ADP
Paychex
Global Cash Access
Global Payments
Master Card
MoneyGram
Amdocs
Convergys
CSG Systems
Synchronoss
IT services companies affected include:

Accenture
Bearing Point
Sapient
Affiliated Computer Services
Computer Sciences
EDS
Unisys
Cognizant
ExlService
Infosys
Patini
Satyam
Witpro
Chip stocks affected by estimate cuts and/or price target changes include:

Advanced Micro Devices
ATMI
Broadcom
Entegris
FormFactor
International Rectifier
Intel
Intersil
Microchip
Micrel
Marvell
Micron
Maxim
National Semi
Nvidia
Teradyne
Texas Instruments
Volterra
Goldman earlier this week made similar moves on software and analog semis.

Today’s Goldman calls helps explain the relative underperformance of tech stocks today; while the Dow gained almost 60 points or 0.45%; the Nasdaq Composite is off 7 points, or 0.3%.
<reader comments beg to differ>
Where to hide now? AMD MU etc. near LT lows.