Robertson Stephens Daily Growth Stock Update on EOP, CY, LSCC, XLNX, MGG

Apr 02, 2001, 01:00 ET from Robertson Stephens, Inc.

    SAN FRANCISCO, April 2 /PRNewswire/ -- The following has been issued by
 Robertson Stephens:
 
     Ratings Changes:
 
     Equity Office Properties Trust
     (NYSE:   EOP) $28.00
     Strong Buy
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     "We are upgrading our rating on EOP shares to Strong Buy, in advance of
     its proposed merger with Spieker Properties which we expect to be
     completed during Q3:01," said Leupp. "We expect the transaction to be
     accretive to FFO by $0.10/share in 2002, accelerating EOP's 2001-2002
     FFO/share growth from 10.8% currently to 13.9% post-merger,.  The proposed
     merger will create a colossal REIT with a 124.0-million-sq.-ft. office
     portfolio, and an equity market capitalization of approximately $14
     billion, comprising approximately 10% of the REIT sector. EOP shares
     currently trade at 8.0x our 2002 FFO/share estimate of $3.50, representing
     a slight premium to its peer group average of 8.2x.  We believe that EOP's
     enhanced liquidity, geographically diverse portfolio, dream-team
     management, and superior expected FFO/share growth rate warrant a richer
     P/FFO multiple premium.  Our one-year price target is $35/share."
 
     Estimate Changes:
 
     Cypress Semiconductor Corporation
     (NYSE:   CY) $17.73
     Long-Term Attractive
     2001E EPS: $0.98, down from $1.37
     2002E EPS: $0.90, down from $1.28
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "The environment for semiconductors continues to be challenging, with what
     may have been conservative guidance just a few weeks ago now appears to
     have been overly optimistic," said Rothdeutsch. "The rate at which large
     communications customers are canceling and rescheduling backlog appears to
     be continuing unabated. Our recent checks in the channel indicate that the
     U.S. continues to be the main cause of weakness, while Europe and Asia
     appear to be holding their own. Given a near-term lack of visibility and a
     continuing burn-off of inventory in the channel, particularly in the U.S.,
     we are reducing our F2001 revenue and EPS estimates for Cypress from $1.16
     billion and $1.37 to $993.9 million and $0.98, respectively.  Our F2002
     revenue and EPS estimates are going from $1.34 billion and $1.28 to $1.15
     billion and $0.90. We remain cautious on the near-term prospects for
     Cypress pending better visibility into the rate at which inventory levels
     are burned off, both at the company and at customers, and a resumption of
     demand from the company's core wireline and wireless communications end
     markets. We are maintaining our Long-Term Attractive on CY."
 
     Lattice Semiconductor Corporation
     (Nasdaq: LSCC) $18.1
     Long-Term Attractive
     F2001E EPS: $0.91, down from $1.02
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "The environment for programmable logic devices (PLDs) continues to be
     challenging, with what we believe may have been conservative guidance just
     a few weeks ago now appears to have been overly optimistic," said
     Rothdeutsch. "The rate at which large communications customers are
     canceling and rescheduling backlog appears to be continuing unabated. Our
     recent checks indicate that sales through distributors in the U.S.
     continue to be the main cause of weakness, while Europe and Japan appear
     to be holding their own. Given a near-term lack of visibility and a
     continuing burn-off of inventory in the channel, particularly in the U.S.,
     we are reducing our F2001 revenue and EPS estimates for Lattice from $474
     million and $1.02 to $435.1 million and $0.91, respectively. In spite of
     weak business conditions, we believe the company continues to gain market
     share in the low-voltage arena as customers transition from 5 volts to 3.3
     volts. We also believe the company is achieving solid design wins with its
     second-generation BFW (big-fast-wide) family, referred to as BFW II.  We
     remain cautious on the near-term prospects for Lattice pending better
     visibility into the rate at which inventory levels are burned off, both at
     the company and at customers, and a resumption of demand from the
     company's core communications end markets.  We are maintaining our Long-
     Term Attractive rating on LSCC."
 
     Xilinx, Inc.
     (Nasdaq: XLNX) $35.13
     Buy
     F2001E EPS: $1.11, down from $1.13
     F2002E EPSL $0.88, down from $1.04
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "The environment for programmable logic devices (PLDs) continues to be
     challenging, with what may have been conservative guidance just a few
     weeks ago now appears to have been overly optimistic," said Rothdeutsch.
     "The rate at which large communications customers are canceling and
     rescheduling backlog appears to us to be continuing unabated. Our recent
     checks indicate that sales through distributors in the U.S. continue to be
     the main cause of weakness, while Europe is holding up surprisingly well
     and Asia, particularly Japan, appear to be softening somewhat. Given a
     near-term lack of visibility and a continuing burn-off of inventory in the
     channel, particularly in the U.S., we are reducing our F2001 revenue and
     EPS estimates for Xilinx from $1.63 billion and $1.13 to $1.61 billion and
     $1.11, respectively.  Our F2002 revenue and EPS estimates are going from
     $1.53 billion and $1.04 to $1.36 billion and $0.88, respectively. Although
     we are cautious near term pending better visibility into the rate at which
     inventories of the company's product are being burned off, we remain
     confident of the strong adoption rates the company has seen with its new
     products--particularly Virtex-E and Spartan II devices--while significant
     customers engagements appear to have begun with Virtex II devices.  We
     continue to believe the company should see strong production orders for
     these products as the multitude of design wins the company has achieved
     over the last 18-24 months ramp into production in the coming quarters.
     We are maintaining our Buy rating and our 12-month price target of $55."
 
     Comments:
 
     MGM Mirage, Inc.
     (NYSE:   MGG) $25.10
     Buy
 
     Harry Curtis, Gaming & Lodging
     "After months of political and financial wrangling, the outlook for
     development of the permanent casinos in Detroit has been clarified," said
     Curtis. "Initially, temporary casinos in Detroit were expected to relocate
     to a development on the river. However, Mayor Archer has been unable to
     assemble riverfront land at a reasonable cost. The price for approximately
     50 acres for development of the three permanent casinos would have been a
     prohibitively high-estimated at $750 million. We believe that two of the
     three operators, Greektown and MotorCity, will remain at their current
     locations and develop additional non-casino amenities on adjacent land
     parcels. In order to fulfill the terms of the city's contract, Greektown
     and MotorCity will invest an incremental $450 million and $550 million,
     respectively. Each will develop a hotel with at least 800 hotel rooms, as
     well as restaurants and retail space. In addition, each must pay a one-
     time $76 million fee to the city to stay at their current locations. By
     comparison, MGM Mirage is likely to invest approximately $700 million for
     the only riverfront site the mayor was able to economically assemble, with
     $600 million dedicated for construction and approximately $100 million for
     land. MGM's site is appealing from the perspective of access, renovation
     of surrounding land parcels, and proximity to the GM building, so the area
     is likely to become a reinvigorated hub of commerce and tourist travel.
     The new resort can be designed with the casino on one floor, with 800
     hotel rooms, and with outsourced restaurants. We view this development
     positively because, given that all three operators must make considerable
     incremental investment, MGM Mirage will operate on the best location for a
     cost not meaningfully higher than its competitors. We expect all three to
     generate strong returns for investors, but we expect MGM to have the
     highest market share and to produce the highest EBITDA in the market,
     which is consistent with its results in other gaming jurisdictions. For
     this reason, we continue to recommend purchase of the stock, with a 12-
     month price target of $36 per share."
 
     Industry Updates:
 
     Robertson Stephens Real Estate Weekly
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     Paul Penney, REITs/REOCs/Real Estate Services
     "While bearing its share the pain of a broad economic slowdown and
 accompanying .com meltdown, numerous indicators suggest to us that the current
 and long-term outlook for Los Angeles's commercial real estate market remains
 favorable," said Leupp and Penney. "Despite recent high-profile layoff
 announcements, LA County created approximately 85,000 new jobs in 2000 (as
 manufacturing, trade, and F.I.R.E. sectors all posted modest growth, and drove
 its unemployment rate to 4.7%), and is expected to create an additional 78,800
 jobs in 2001.  In addition, the California Economic Development Department
 estimates that LA County's population will grow 18% by 2020 to over 11.5
 million residents, which we believe bodes well for the regions long-term real
 estate market outlook."
 
     Unless otherwise noted, prices are as of Friday, March 30, 2001.
 
     Robertson Stephens maintains a market in the shares of Lattice
 Semiconductor and Xilinx and has been managing or comanaging underwriter for
 or has privately placed securities of Cypress Semiconductor within the past
 three years.
     Robertson Stephens, Inc. and its international affiliates ("Robertson
 Stephens") is the leading full-service investment bank focused exclusively on
 growth companies. The firm provides a comprehensive set of investment banking
 products and services, including equity underwriting, sales & trading,
 research, M&A advisory, convertible securities, private capital, equity
 derivatives, and corporate and executive services. Robertson Stephens, Inc. is
 a member of the NASD and all major exchanges. Robertson Stephens has more than
 1,400 employees worldwide with offices in San Francisco, Boston, New York,
 Palo Alto, Chicago, Atlanta, London, Munich and Tel Aviv.
     Robertson Stephens, Inc. ("Robertson Stephens") is a NASD member and a
 member of all major exchanges and SIPC.
     The information contained herein is not a complete analysis of every
 material fact respecting any company, industry or security. Although opinions
 and estimates expressed herein reflect the current judgment of Robertson
 Stephens, the information upon which such opinions and estimates are based is
 not necessarily updated on a regular basis; when it is, the date of the change
 in estimate will be noted. In addition, opinions and estimates are subject to
 change without notice. This Report contains forward-looking statements, which
 involve risks and uncertainties. Actual results may differ significantly from
 the results described in the forward-looking statements. Factors that might
 cause such a difference include, but are not limited to, those discussed in
 "Investment Risks." Robertson Stephens from time to time performs corporate
 finance or other services for some companies described herein and may
 occasionally possess material, nonpublic information regarding such companies.
 This information is not used in the preparation of the opinions and estimates
 herein. While the information contained in this Report and the opinions
 contained herein are based on sources believed to be reliable, Robertson
 Stephens has not independently verified the facts, assumptions and estimates
 contained in this Report. Accordingly, no representation or warranty, express
 or implied, is made as to, and no reliance should be placed on, the fairness,
 accuracy, completeness or correctness of the information and opinions
 contained in this Report. Robertson Stephens, its managing directors, its
 affiliates, its employee investment funds, and/or its employees, including the
 research analysts authoring this report, may have an interest in the
 securities of the issuer(s) described and may make purchases or sales while
 this Report is accessible. Robertson Stephens International, Ltd. is regulated
 by the Securities and Futures Authority in the United Kingdom. This
 publication is not meant for private customers.
     Fleet Meehan Specialist, Inc. (Member NYSE), an affiliate of Robertson
 Stephens, Inc., is the specialist that makes a market in  Alcatel, AutoNation,
 Inc., Cabletron Systems, Inc., Cash America International, Inc., Catellus
 Development Corp., CKE Restaurants, Inc., Computer Associates International,
 Electronic Data Systems Corporation, Ethan Allen Interiors Inc., FelCor
 Lodging Trust Inc., Foundation Health Systems, Inc., Harrah's Entertainment,
 Inc., Hilton Hotels Corporation, The Home Depot, Inc., International Game
 Technology, Jones Apparel Group, Inc., McDonald's Corporation,  The Men's
 Wearhouse, MGM Mirage, Inc., National Semiconductor Corporation, Park Place
 Entertainment Corporation, Public Storage Inc., Scientific-Atlanta Inc.,
 Seagate Technology, Inc., Shurgard Storage Centers, Inc., Station Casinos
 Inc., The Talbots, Inc., Tommy Hilfiger Corporation and Wal-Mart Stores, Inc.
 and at any given time, Fleet Meehan Specialist may have an inventory position,
 either "long" or "short," in this security.  As a result of Fleet Meehan
 Specialist's function as a market maker, such specialist may be on the
 opposite side of orders executed on the floor of the Exchange in this
 security.
     Copyright (C) 2001 Robertson Stephens
 
     Robertson Stephens is a member of the National Association of Securities
 Dealers, CRD number 41271.
 
 

SOURCE Robertson Stephens, Inc.
    SAN FRANCISCO, April 2 /PRNewswire/ -- The following has been issued by
 Robertson Stephens:
 
     Ratings Changes:
 
     Equity Office Properties Trust
     (NYSE:   EOP) $28.00
     Strong Buy
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     "We are upgrading our rating on EOP shares to Strong Buy, in advance of
     its proposed merger with Spieker Properties which we expect to be
     completed during Q3:01," said Leupp. "We expect the transaction to be
     accretive to FFO by $0.10/share in 2002, accelerating EOP's 2001-2002
     FFO/share growth from 10.8% currently to 13.9% post-merger,.  The proposed
     merger will create a colossal REIT with a 124.0-million-sq.-ft. office
     portfolio, and an equity market capitalization of approximately $14
     billion, comprising approximately 10% of the REIT sector. EOP shares
     currently trade at 8.0x our 2002 FFO/share estimate of $3.50, representing
     a slight premium to its peer group average of 8.2x.  We believe that EOP's
     enhanced liquidity, geographically diverse portfolio, dream-team
     management, and superior expected FFO/share growth rate warrant a richer
     P/FFO multiple premium.  Our one-year price target is $35/share."
 
     Estimate Changes:
 
     Cypress Semiconductor Corporation
     (NYSE:   CY) $17.73
     Long-Term Attractive
     2001E EPS: $0.98, down from $1.37
     2002E EPS: $0.90, down from $1.28
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "The environment for semiconductors continues to be challenging, with what
     may have been conservative guidance just a few weeks ago now appears to
     have been overly optimistic," said Rothdeutsch. "The rate at which large
     communications customers are canceling and rescheduling backlog appears to
     be continuing unabated. Our recent checks in the channel indicate that the
     U.S. continues to be the main cause of weakness, while Europe and Asia
     appear to be holding their own. Given a near-term lack of visibility and a
     continuing burn-off of inventory in the channel, particularly in the U.S.,
     we are reducing our F2001 revenue and EPS estimates for Cypress from $1.16
     billion and $1.37 to $993.9 million and $0.98, respectively.  Our F2002
     revenue and EPS estimates are going from $1.34 billion and $1.28 to $1.15
     billion and $0.90. We remain cautious on the near-term prospects for
     Cypress pending better visibility into the rate at which inventory levels
     are burned off, both at the company and at customers, and a resumption of
     demand from the company's core wireline and wireless communications end
     markets. We are maintaining our Long-Term Attractive on CY."
 
     Lattice Semiconductor Corporation
     (Nasdaq: LSCC) $18.1
     Long-Term Attractive
     F2001E EPS: $0.91, down from $1.02
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "The environment for programmable logic devices (PLDs) continues to be
     challenging, with what we believe may have been conservative guidance just
     a few weeks ago now appears to have been overly optimistic," said
     Rothdeutsch. "The rate at which large communications customers are
     canceling and rescheduling backlog appears to be continuing unabated. Our
     recent checks indicate that sales through distributors in the U.S.
     continue to be the main cause of weakness, while Europe and Japan appear
     to be holding their own. Given a near-term lack of visibility and a
     continuing burn-off of inventory in the channel, particularly in the U.S.,
     we are reducing our F2001 revenue and EPS estimates for Lattice from $474
     million and $1.02 to $435.1 million and $0.91, respectively. In spite of
     weak business conditions, we believe the company continues to gain market
     share in the low-voltage arena as customers transition from 5 volts to 3.3
     volts. We also believe the company is achieving solid design wins with its
     second-generation BFW (big-fast-wide) family, referred to as BFW II.  We
     remain cautious on the near-term prospects for Lattice pending better
     visibility into the rate at which inventory levels are burned off, both at
     the company and at customers, and a resumption of demand from the
     company's core communications end markets.  We are maintaining our Long-
     Term Attractive rating on LSCC."
 
     Xilinx, Inc.
     (Nasdaq: XLNX) $35.13
     Buy
     F2001E EPS: $1.11, down from $1.13
     F2002E EPSL $0.88, down from $1.04
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "The environment for programmable logic devices (PLDs) continues to be
     challenging, with what may have been conservative guidance just a few
     weeks ago now appears to have been overly optimistic," said Rothdeutsch.
     "The rate at which large communications customers are canceling and
     rescheduling backlog appears to us to be continuing unabated. Our recent
     checks indicate that sales through distributors in the U.S. continue to be
     the main cause of weakness, while Europe is holding up surprisingly well
     and Asia, particularly Japan, appear to be softening somewhat. Given a
     near-term lack of visibility and a continuing burn-off of inventory in the
     channel, particularly in the U.S., we are reducing our F2001 revenue and
     EPS estimates for Xilinx from $1.63 billion and $1.13 to $1.61 billion and
     $1.11, respectively.  Our F2002 revenue and EPS estimates are going from
     $1.53 billion and $1.04 to $1.36 billion and $0.88, respectively. Although
     we are cautious near term pending better visibility into the rate at which
     inventories of the company's product are being burned off, we remain
     confident of the strong adoption rates the company has seen with its new
     products--particularly Virtex-E and Spartan II devices--while significant
     customers engagements appear to have begun with Virtex II devices.  We
     continue to believe the company should see strong production orders for
     these products as the multitude of design wins the company has achieved
     over the last 18-24 months ramp into production in the coming quarters.
     We are maintaining our Buy rating and our 12-month price target of $55."
 
     Comments:
 
     MGM Mirage, Inc.
     (NYSE:   MGG) $25.10
     Buy
 
     Harry Curtis, Gaming & Lodging
     "After months of political and financial wrangling, the outlook for
     development of the permanent casinos in Detroit has been clarified," said
     Curtis. "Initially, temporary casinos in Detroit were expected to relocate
     to a development on the river. However, Mayor Archer has been unable to
     assemble riverfront land at a reasonable cost. The price for approximately
     50 acres for development of the three permanent casinos would have been a
     prohibitively high-estimated at $750 million. We believe that two of the
     three operators, Greektown and MotorCity, will remain at their current
     locations and develop additional non-casino amenities on adjacent land
     parcels. In order to fulfill the terms of the city's contract, Greektown
     and MotorCity will invest an incremental $450 million and $550 million,
     respectively. Each will develop a hotel with at least 800 hotel rooms, as
     well as restaurants and retail space. In addition, each must pay a one-
     time $76 million fee to the city to stay at their current locations. By
     comparison, MGM Mirage is likely to invest approximately $700 million for
     the only riverfront site the mayor was able to economically assemble, with
     $600 million dedicated for construction and approximately $100 million for
     land. MGM's site is appealing from the perspective of access, renovation
     of surrounding land parcels, and proximity to the GM building, so the area
     is likely to become a reinvigorated hub of commerce and tourist travel.
     The new resort can be designed with the casino on one floor, with 800
     hotel rooms, and with outsourced restaurants. We view this development
     positively because, given that all three operators must make considerable
     incremental investment, MGM Mirage will operate on the best location for a
     cost not meaningfully higher than its competitors. We expect all three to
     generate strong returns for investors, but we expect MGM to have the
     highest market share and to produce the highest EBITDA in the market,
     which is consistent with its results in other gaming jurisdictions. For
     this reason, we continue to recommend purchase of the stock, with a 12-
     month price target of $36 per share."
 
     Industry Updates:
 
     Robertson Stephens Real Estate Weekly
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     Paul Penney, REITs/REOCs/Real Estate Services
     "While bearing its share the pain of a broad economic slowdown and
 accompanying .com meltdown, numerous indicators suggest to us that the current
 and long-term outlook for Los Angeles's commercial real estate market remains
 favorable," said Leupp and Penney. "Despite recent high-profile layoff
 announcements, LA County created approximately 85,000 new jobs in 2000 (as
 manufacturing, trade, and F.I.R.E. sectors all posted modest growth, and drove
 its unemployment rate to 4.7%), and is expected to create an additional 78,800
 jobs in 2001.  In addition, the California Economic Development Department
 estimates that LA County's population will grow 18% by 2020 to over 11.5
 million residents, which we believe bodes well for the regions long-term real
 estate market outlook."
 
     Unless otherwise noted, prices are as of Friday, March 30, 2001.
 
     Robertson Stephens maintains a market in the shares of Lattice
 Semiconductor and Xilinx and has been managing or comanaging underwriter for
 or has privately placed securities of Cypress Semiconductor within the past
 three years.
     Robertson Stephens, Inc. and its international affiliates ("Robertson
 Stephens") is the leading full-service investment bank focused exclusively on
 growth companies. The firm provides a comprehensive set of investment banking
 products and services, including equity underwriting, sales & trading,
 research, M&A advisory, convertible securities, private capital, equity
 derivatives, and corporate and executive services. Robertson Stephens, Inc. is
 a member of the NASD and all major exchanges. Robertson Stephens has more than
 1,400 employees worldwide with offices in San Francisco, Boston, New York,
 Palo Alto, Chicago, Atlanta, London, Munich and Tel Aviv.
     Robertson Stephens, Inc. ("Robertson Stephens") is a NASD member and a
 member of all major exchanges and SIPC.
     The information contained herein is not a complete analysis of every
 material fact respecting any company, industry or security. Although opinions
 and estimates expressed herein reflect the current judgment of Robertson
 Stephens, the information upon which such opinions and estimates are based is
 not necessarily updated on a regular basis; when it is, the date of the change
 in estimate will be noted. In addition, opinions and estimates are subject to
 change without notice. This Report contains forward-looking statements, which
 involve risks and uncertainties. Actual results may differ significantly from
 the results described in the forward-looking statements. Factors that might
 cause such a difference include, but are not limited to, those discussed in
 "Investment Risks." Robertson Stephens from time to time performs corporate
 finance or other services for some companies described herein and may
 occasionally possess material, nonpublic information regarding such companies.
 This information is not used in the preparation of the opinions and estimates
 herein. While the information contained in this Report and the opinions
 contained herein are based on sources believed to be reliable, Robertson
 Stephens has not independently verified the facts, assumptions and estimates
 contained in this Report. Accordingly, no representation or warranty, express
 or implied, is made as to, and no reliance should be placed on, the fairness,
 accuracy, completeness or correctness of the information and opinions
 contained in this Report. Robertson Stephens, its managing directors, its
 affiliates, its employee investment funds, and/or its employees, including the
 research analysts authoring this report, may have an interest in the
 securities of the issuer(s) described and may make purchases or sales while
 this Report is accessible. Robertson Stephens International, Ltd. is regulated
 by the Securities and Futures Authority in the United Kingdom. This
 publication is not meant for private customers.
     Fleet Meehan Specialist, Inc. (Member NYSE), an affiliate of Robertson
 Stephens, Inc., is the specialist that makes a market in  Alcatel, AutoNation,
 Inc., Cabletron Systems, Inc., Cash America International, Inc., Catellus
 Development Corp., CKE Restaurants, Inc., Computer Associates International,
 Electronic Data Systems Corporation, Ethan Allen Interiors Inc., FelCor
 Lodging Trust Inc., Foundation Health Systems, Inc., Harrah's Entertainment,
 Inc., Hilton Hotels Corporation, The Home Depot, Inc., International Game
 Technology, Jones Apparel Group, Inc., McDonald's Corporation,  The Men's
 Wearhouse, MGM Mirage, Inc., National Semiconductor Corporation, Park Place
 Entertainment Corporation, Public Storage Inc., Scientific-Atlanta Inc.,
 Seagate Technology, Inc., Shurgard Storage Centers, Inc., Station Casinos
 Inc., The Talbots, Inc., Tommy Hilfiger Corporation and Wal-Mart Stores, Inc.
 and at any given time, Fleet Meehan Specialist may have an inventory position,
 either "long" or "short," in this security.  As a result of Fleet Meehan
 Specialist's function as a market maker, such specialist may be on the
 opposite side of orders executed on the floor of the Exchange in this
 security.
     Copyright (C) 2001 Robertson Stephens
 
     Robertson Stephens is a member of the National Association of Securities
 Dealers, CRD number 41271.
 
 SOURCE  Robertson Stephens, Inc.