Piper Jaffray's Semiconductor Update

Piper Jaffray is out with its Semiconductor Update and notes price target risks on the following companies: Applied Materials AMAT is Neutral rated with a $12 price target based on 9x CY11E non-GAAP EPS of $1.35. Risks: A high degree of industry cyclicality, competition, capital constraints of customers, and execution and competitive risk with respect to the company's solar efforts. ASML Holding ASML is Overweight rated with a $49 price target based on 13x CY 2011E EPS. Risks include: industry cyclicality, reliance on a few key suppliers, and customer concentration. The risk to ASML is the use of maskless lithography such as imprint lithography or e-beam lithography below 16nm. The lithography road map challenges are looming on the horizon and could have negative consequences for the share in the 2013 to 2015 time frame. Nanometrics Inc. NANO is Overweight rated with a $22 price target based on 12x CY11E EPS. Risks for Nanometrics include, but are not limited to: 1) industry cyclically, 2) customer and memory market concentration, and 3) expected share gains. Teradyne Inc. TER is Overweight rated with a $19.50 price target based on 10x our CY11E EPS. Risk factors for Teradyne, Inc. include 1) industry cyclicality, 2) weak macro environment, 3) competition, and 4) lack of share gains. Ultra Clean Holdings UCTT is Overweight rated with a $13 price target based on 10x CY 2011E EPS. Risks included a high degree of cyclicality, limited liquidity, and high industry and customer concentration.