RBC Cuts Technology Sector Rating as Chip Earnings Momentum Slows

RBC Capital Markets lowered its rating on technology stocks on Oct. 14, citing slower upward earnings estimate revisions for semiconductor companies and a risk of further weakness in the sector. The bank moved technology from overweight to market weight and recommended health care. RBC U.S. equity strategy head Lori Calvasina said revisions for the broader technology sector remained strong, but their pace had begun to slow for companies in the Russell 3000 semiconductor and semiconductor equipment industry. A further deceleration would be a negative signal for performance and could indicate another leg down. Semiconductor funds declined on Oct. 14.

Source: TokenPost