UPDATE: UBS Downgrades ATMI to Sell on Semi Wafer Outlook

UBS downgraded its rating on ATMI

from Neutral to Sell and reduced its price target from $22 to $16. UBS noted, "Our checks found total 2Q12 semiconductor wafer starts in Taiwan rose by 15% q/q which we believe benefitted from some pull-in demand as yields at the 28nm node improved and expect ATMI to beat our 2Q12 sales and EPS of $102.7M and $0.30. But we lower our 2H12 sales and EPS by -2% and -7% to account for less visibility due to macro uncertainty. … We believe an industry trend that shows stronger yoy growth in 2013 semiconductor capex (we estimate +12% yoy) versus semi wafer start growth (we estimate +5% yoy) could create a P/E re-rating lower in ATMI (90% of sales are semi wafer related) versus pure play semicap equipment stocks." ATMI closed at $20.34 on Friday.