Needham & Company Downgrades Intevac (IVAC) to Hold

Needham & Company downgraded Intevac (NASDAQ: IVAC) from Buy to Hold and removed its $10 price target following Q1 results/Q2 outlook.

Analyst Richard Kugele commented, " With $81M in cash (as of 12/31/13) and annual cash burn of just $5M, we believe IVAC has enough runway to await a recovery in the capital spending on which it so depends. Few signs of that recovery exist today given the return to normal seasonality within the HDD industry, continued excess manufacturing capacity, and overall growth insufficient to materially eat into that capacity until late 2014 to mid-2015. IVAC's annual outlook now is also heavily back-end-loaded. Because of these factors, combined with a stock price leaving little room to our $10 target, we are downgrading to Hold from Buy."

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

Shares of Intevac closed at $9.22 yesterday.

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