Goldman Sachs Looks At Semiconductor Stocks

In notes out this morning, Goldman Sachs analysts had comments on several semiconductor stocks, upgrading Sandisk

and Broadcom

while downgrading Marvel Technology Group

and Jabil Circuit

The four stocks, along with analysts takeaways, are highlighted below. SanDisk Corporation-We upgrade SanDisk to Buy from Neutral and see a 15% total return (with the 1% dividend yield) to our new 12-month price target of $106. Upgrade to Buy on potential gross margin expansion in 2015E. We believe SanDisk will guide 2015E margins above the Street on its 4Q call, and we raise our EPS estimates. Broadcom-We upgrade Broadcom to Buy and see 17% upside (vs. 2% downside for our coverage group on average) to our new 12-month $48 price target. We expect product cycles in 2H15/16 to drive 5-10% upside to Street EPS, Jabil Circuit- We downgrade JBL to Neutral from Buy with the stock now trading within 3% of our 12-month price target (which is unchanged at $22). We continue to see upside to Street EPS, but this is offset by customer concentration and valuation. Marvell Technology Group -We downgrade Marvell to Sell from Neutral and see 10% downside to our 12-month price target of $12. We expect weakness at key handset customers Samsung and ZTE, declining ASPs for China LTE, and lower sell in for gaming.