Needham & Company Cuts Estimates and PT on FSI International (FSII); Guidance Soft, But Long-Term Thesis Intact

June 20, 2012 7:48 AM EDT
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Price: $6.22 --0%

Rating Summary:
    0 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 17 | New: 10
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Needham & Company reiterates a 'Buy' on FSI International (NASDAQ: FSII) price target of $6.50 (from $7.50).

Analyst, Y. Edwin Mok, said, "FSII reported strong F3Q12 (May) revenue and earnings but provided lower guidance, largely due to Samsung (N/R) digesting recent investments. We are not concerned as we believe FSII’s strong momentum behind its single-wafer cleaning products at multiple customers will continue to drive growth. Given that the stock was up 38% in the last five trading days, it is likely to pull back on the softer outlook. However, we recommend investors buy on weakness. With its business transitioning from legacy batch to single-wafer clean products and the company achieving higher levels of orders/revenue/earnings than in the last few years, we see a dislocation between the strong product cycle story and the low valuation."

Mok cuts FY12 EPS estimates form $0.43 to $0.39 and FY13 from $0.67 to $0.61.

For an analyst ratings summary and ratings history on FSI International click here. For more ratings news on FSI International click here.

Shares of FSI International closed at $4.44 yesterday.

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