Needham & Company Downgrades Cabot Microelectronics (CCMP) to Hold

Needham & Company downgraded Cabot Microelectronics (NASDAQ: CCMP) from Buy to Hold.

Analyst Y. Edwin Mok commented, "We are downgrading CCMP to Hold from Buy based on 1) increased risks to estimates due to lower PC demand, highlighted by INTC's [Hold] pre-announcement; 2) limited growth of the pad business despite progress made; 3) limited capital return despite strong cash generation; and 4) our view that the stock is fully valued. CCMP has consistently delivered the highest margin and cash flow generation among its semiconductor material supplier peers, but its CMP consumables business has high exposure to the slow-growing legacy semi production, resulting in limited top-line growth. With the stock approaching our prior Price Target of $54, we see limited upside and believe a Hold rating is more appropriate at this time."

For an analyst ratings summary and ratings history on Cabot Microelectronics click here. For more ratings news on Cabot Microelectronics click here.

Shares of Cabot Microelectronics closed at $50.87 yesterday.

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