John Pitzer of Credit Suisse drops from second place to third but is still performing at a “stellar level,” according to one money manager. Another describes the San Francisco–based analyst as “perhaps the best field-researcher in the space,” adding that “his semiconductors logic research consistently upholds a high standard for thorough technical diligence.” Pitzer added coverage of eight names over the past year, bringing his universe total to 32, and holds what he calls a “slight positive bias” on the group. “Since November 2012 we have been recommending an unorthodox investment strategy,” Pitzer notes, “arguing [that] clients should focus on semiconductor companies that have significant exposure to [industrial, auto and infrastructure] end markets.” Examples include Norwood, Massachusetts–based Analog Devices; Freescale Semiconductor of Austin, Texas; the Netherlands’ NXP Semiconductors; and San Jose, California–based Xilinx. Memory-segment companies such as Micron Technology of Boise, Idaho, and Milpitas, California–based SanDisk Corp. are particular Pitzer favorites. “Supply growth is structurally slowing,” he explains, “which should support higher and more sustainable levels of free cash flow for the industry — driving multiple expansion and revaluation higher.” — Pam Baker |
Pam Baker Credit Suisse John Pitzer California San Jose
