) to buy from hold Friday, citing cost savings from the Mykrolis merger.
Analyst Hari Chandra believes cost savings from the Mykrolis merger will likely exceed the $15 million target. He noted that indications from management lead him to believe that the $6 million incremental cost savings are likely on top of the $15 million target by the company.
He said he had not modeled for any revenue synergies earlier, but now estimates $12 million upside to his $730 million fiscal year 2006 (ending August) estimate from product/customer leverage from Mykrolis.
The analyst now sees $742.1 million fiscal year 2006 revenue and raised his target to $13, 20 times his 65 cents calendar year 2006 earnings per share estimates, vs. the 15 times to 21 times range he assigns to the broader semicap/materials group.