ML-BAC favors UTEK notwithstanding reduction in capex by Samsung and others
In a research note issued yesterday ("Samsung capex cut chatter negative for sentiment"), ML-BAC indicated that it prefers "ASML, KLAC, CYMI and UTEK in this environment [of reduced capex spending.] Our Buys are tied to companies that are technology enablers (ASML, KLAC) and/or product cycle stories (CYMI, UTEK). Besides, these companies should benefit from sustained levels of foundry spending into CY13E. Since foundries tend not to reuse equipment at the leading edge, we like foundry-leveraged stocks such as KLAC and UTEK. KLAC is not highly leveraged to memory and UTEK has no memory exposure at this point (comments in brackets added)."