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Morgan Stanley cuts revenue forecast

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CIOL Bureau
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NEW YORK: Morgan Stanley on Friday cut its 2003 revenue growth forecast for the semiconductor industry to a range of 15 percent to 20 percent from a previous range of 20 percent to 25 percent, citing the risks of a weakening global economy during the 2002 second half. "Due to the recent trend of negative economic data, we have lowered our 2003 revenue growth forecast ... and a double-dip (recession) economic scenario would lead to further downside," Morgan Stanley's research team said.



"Negative earnings surprises increased to a normal level in the second quarter, and we believe that the back-end-loaded nature of the third quarter has combined with weaker economic data points to promote a further increase in earnings risk," the researchers said.

© Reuters

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