VSH DLJ talks about the company, raised 12 month price target to $125. Also raising earnings estimates, and say that even though the earnings are substantially higher, still do not reflect the full earnings power of the company and the industry.
"While earnings at Siliconix are up sharply, primarily driven by strength in the cellular phone industry, the other segments of Vishay's business are still operating well below normalized levels of profitability and improving rapidly. We are seeing clear signs tht VSH's resitor products are experiencing an acceleration of growth and improved pricing,a signal, in our opinion, that the recovery is extending beyond the cell phone industry, that components will remain tight for the foreseeable future, and that VSH's EPS will continue to beat expectations. SILCONIX [power MOSFETs, power IC's, analog signal processing devices] CONTINUES TO GAIN MOMENTUM AND IS CLEARLY BECOMING AN IMPORTANT DRIVER OF VISHAY'S OVERALL PERFORMANCE. Since being acquired in March 1998, Siliconix has gained market share, introduced new products, improved profitability dramatically (40% gross margins in Q4) and is growing 40% annually. Siliconix's stock price appreciated 530% in 1999, clearly reflecting the company's strong performance. WE BELIEVE THE MARKET HAS YET TO FULLY APPRECIATE THE SIGNIFICANT IMPACT SILICONIX HAS HAD ON VISHAY RESULTS OR THE IMPORTANCE OF ITS CONTRIBUTION GOING FORWARD (Vishay owns 80% of SILI) Siliconix now represents roughly 50% of Vishay's earnings."