Auriga Maintains a 'Buy' on Intevac (IVAC); Trimming C11 Estimates After Updating Proprietary Platter Analysis
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Price: $4.60 -0.43%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade IVAC Now!
Auriga maintains a 'Buy' on Intevac (NASDAQ: IVAC), PT $18.
Auriga analyst says, "We are now assuming what we view as a worst case scenario for 2011, with just one additional follow on order coming from an HDD customer. As such, the Intevac story will require continued patience, but we continue to believe patience will be rewarded. While 2011 is clearly going to be a rough year for the core HDD equipment business, we believe it will throw off decent cash flow over time. Meanwhile, potentially large long term growth opportunities in both Photonics and Solar continue to be misunderstood and unappreciated."
"...As a result of the revenue reduction, our 2011 pro-forma EPS estimate goes to ($0.61) from ($0.48)... We believe Seagate alone could allow Intevac to reach our assumption of 10 HDD system orders in 2012, based on our proprietary industry capacity analysis, thus there is no change to our 2012 revenue assumption of $183Mn (Street at $189Mn) at this time, and our pro-forma EPS estimate remains at $0.58."
For more ratings news on Intevac click here and for the rating history of Intevac click here.
Shares of Intevac closed at $9.40 yesterday, with a 52 week range of $8.97-$15.39.
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Auriga analyst says, "We are now assuming what we view as a worst case scenario for 2011, with just one additional follow on order coming from an HDD customer. As such, the Intevac story will require continued patience, but we continue to believe patience will be rewarded. While 2011 is clearly going to be a rough year for the core HDD equipment business, we believe it will throw off decent cash flow over time. Meanwhile, potentially large long term growth opportunities in both Photonics and Solar continue to be misunderstood and unappreciated."
"...As a result of the revenue reduction, our 2011 pro-forma EPS estimate goes to ($0.61) from ($0.48)... We believe Seagate alone could allow Intevac to reach our assumption of 10 HDD system orders in 2012, based on our proprietary industry capacity analysis, thus there is no change to our 2012 revenue assumption of $183Mn (Street at $189Mn) at this time, and our pro-forma EPS estimate remains at $0.58."
For more ratings news on Intevac click here and for the rating history of Intevac click here.
Shares of Intevac closed at $9.40 yesterday, with a 52 week range of $8.97-$15.39.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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