) and Fairchild Semiconductor (FCS
) to equal-weight from overweight, and cut Intel's (INTC
) estimate and price target.
Analyst Tim Luke says it's possible that a near-term semiconductor rally may ensue following somewhat more encouraging PC trends in July. However, unit growth could continue to run ahead of mixed end-market demand into the fourth quarter, or even into the first quarter of 2005.
Luke says with Xilinx's second-quarter likely more back-end loaded, his $1.35 calendar 2005 earnings per share estimate is reduced to $1.32, and he cut the $37 price target to $33. Also, he trimmed Fairchild's $1.51 2005 earnings per share estimate to $1.41, and cut the $21 target to $18.
He cut Intel's $1.33 2005 earnings per share estimate to $1.30 and reduced the target price to $26.