Thursday, November 15, 2012

Euro Chip Stocks: AIXG, IFX, ARMH Downgraded By J.P. Morgan

J.P. Morgan Cazenove this morning downgraded a trio of European chip stocks, asserting that it is too risky to stay invested in the group for the potential last leg of inventory restocking, Marketwatch notes. The firm asserts that Euro weakness will reduce demand for dollar-denominated electronics – and that Chinese demand could slow in the second half. J.P. Morgan also sees potential TV inventory overhand from a strong build ahead of the World Cup, and the firm sees possible softening in solar-related demand from a reduction in German subsidies effective July 1.

  • Aixtron (AIXG) was downgraded to Neutral from Overweight.
  • Infineon (IFX) likewise was cut to Neutral from Overweight.
  • ARM Holdings (ARMH) was cut to Underweight from Neutral.

In this morning’s trading:

  • AIXG is down $3.21, or 11.6%, yo $24.50.
  • ARMH is down 54 cents, to 5.3%, to $9.73.
  • In European trading, Infineon shares are down 41 Euro cents, or 8.9%, to 4.24 Euros.

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