Citigroup's Terence Whalen picks up coverage of semi equipment stocks
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Citigroup's Terence Whalen picks up coverage of semi equipment stocks and raises KLA Tencor ([[KLAC]] +1.2%) and Novellus ([[NVLS]] +3.1%) to Buy from Neutral, while cutting FormFactor ([[FORM]] -2.6%) to Neutral. Investors “have yet to correctly quantify escalating capital intensity” in the chip manufacturing business, he asserts, expecting wafer fab equipment spending will near $36B in three years.
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