Got below's info on CSM's upgrade by Citigroup yesterday in US from Yahoo! forum. I read till blur blur .....

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Thought you might want to see what Citigroup wrote today when they upgraded Chartered Semiconductor.

Upgrading Chartered to BUY (1M) from Sell (3M)
After Chartered to give below consensus guidance, which might lead to
consensus estimate cuts, we revisit our Sell call and previous concerns: 1) Intel
CPU price war might affect AMD's outsourcing orders to Chartered; 2) rich
valuation of 1.9-2.0x book with ROE of 6-8%; 3) consensus estimates were
much higher than our estimates; and 4) xBOX 360 CPU order cuts seem to
haven been pushed back. However, after the recent share price pull-back,
along with the company's confirmation of another cut in xBOX 360 CPU orders,
we think the risk-reward is now more favorable for investors on a one year
investment horizon. We are thus upgrading Chartered to a Buy (1M) from a Sell
(3M) but trimming our one-year target price to US$8.8 from US$9.3 to reflect
5% lower than expected book value appreciation in the next few quarters. We
here explain our thought process changes to turn more positive on Chartered
now.


xBOX 360 CPU order cuts nearly over: As often emphasized in our reports,
we feared Chartered/IBM were over-producing xBOX 360 CPUs compared
with Microsoft's actual demand, and anticipated a large order cut in 1H06.
In line with this view, Chartered reported a xBOX 360 CPU order decline of
14% qoq in 1Q06 and of 10% qoq in 2Q06 to US$97m (25% of sales) and
US$87m (22% of sales), respectively. Surprisingly, Chartered guides to
another xBOX 360 CPU order cut in 3Q06, and we thus believe xBOX 360
CPU order cuts are nearly over based on our revised supply-demand
analysis. We now expect Microsoft to resume placing game CPU orders
with IBM/Chartered in 4Q06 for 4Q06-1Q07 seasonal demand in the game
market and expect larger orders recovery in 2Q07-4Q07 for 2007 xBOX
360 game consoles build-up.


AMD CPU orders on track with limited downside risk: Although Chartered
guides to weakness in the game IC market, Chartered expects strength in
the PC segment in 3Q06, especially driven by AMD 90nm CPU orders. This
strength, 2-3,000 12" wafers per month orders from AMD or nearly 5-10%
of Chartered sales, is expected to boost overall 90nm sales to grow
approximately 25% qoq by accounting for 28% of sales in 3Q06 from 22%
in 2Q06. Given concerns about Intel CPU price wars might result AMD to
lose market shares and also affect AMD's outsourcing order growth to
Chartered in a near term, we thus forecast much flattish AMD CPU orders
to Chartered throughout 3Q06-1H07E but also expect a limited downside
risk on these 2-3,000 wafers per month trial run orders. In terms of upside
potential on AMD orders to Chartered in 2007, we see Vista introduction in
early 2007, faster PC growth from emerging markets, and share gains on
the Dell account as positive upside catalysts.


Rich to attractive valuation on P/BV and EV/EBITDA: After nearly 43%
correction from 12-month peak of US$11.81 in May 2, 2006, Chartered is
now trading at a much attractive valuation of 1.3x 2007E-08E P/BV with a
revised ROE of 4-5% and a attractive valuation of 3.5-4.0 2007E-08E
EV/EBITDA. Given Chartered has been outperforming UMC on op margin
over the past three quarters, along with its better position on 90nm foundry
(17-18% of 3Q06E sales into 90nm for UMC vs 28% of 3Q06 sales into 90nm for Chartered)
and less exposure to potential handset IC inventory correction during 4Q06-1Q07,
we expect Chartered to be trading at a P/BV
premium again and to outperform UMC for the next 6 months once
inventory correction in the general market is completed. Chartered was
underperforming TSMC and UMC by 27% and 25%, respectively, since
May 2 2006 (12-month peak price).