Canaccord Genuity Maintains a 'Sell' on Veeco Instruments (VECO); Keeping Negative View on LED Equipment Market
VECO Hot Sheet
Rating Summary:7 Buy, 11 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Canaccord Genuity maintains a 'Sell' on Veeco Instruments Inc. (NASDAQ: VECO) price target raised from $14 to $18.
Analyst, Jonathan Dorsheimer, said, "Despite Veeco reporting a mostly in-line Q4, we maintain our rating on the shares as we still feel that expectations are too high and visibility is extremely limited for the LED equipment market in 2012."
"Given what we see as a sharp decline in earnings power, we feel a 1.0x multiple of tangible book value is a more appropriate valuation metric. As a result, we are raising our price target. Because the company is actively looking at M&A opportunities, there could be further downside to our target should tangible book value change. We have raised revenues for 2012 on a boost in HDD equipment sales, but our EPS estimate is lower despite a lower tax rate on a lack of leverage and an inability to bring down OPEX in line with revenues."
For an analyst ratings summary and ratings history on Veeco Instruments Inc. click here. For more ratings news on Veeco Instruments Inc. click here.
Shares of Veeco Instruments Inc. closed at $27.14 yesterday, with a 52 week range of $20.35-$57.67.
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Analyst, Jonathan Dorsheimer, said, "Despite Veeco reporting a mostly in-line Q4, we maintain our rating on the shares as we still feel that expectations are too high and visibility is extremely limited for the LED equipment market in 2012."
"Given what we see as a sharp decline in earnings power, we feel a 1.0x multiple of tangible book value is a more appropriate valuation metric. As a result, we are raising our price target. Because the company is actively looking at M&A opportunities, there could be further downside to our target should tangible book value change. We have raised revenues for 2012 on a boost in HDD equipment sales, but our EPS estimate is lower despite a lower tax rate on a lack of leverage and an inability to bring down OPEX in line with revenues."
For an analyst ratings summary and ratings history on Veeco Instruments Inc. click here. For more ratings news on Veeco Instruments Inc. click here.
Shares of Veeco Instruments Inc. closed at $27.14 yesterday, with a 52 week range of $20.35-$57.67.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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