Needham Surprised By Veeco (VECO) Debt Offering

Needham & Company maintains Hold on Veeco Instruments Inc. (NASDAQ: VECO).

Analyst Edwin Mok comments "We are a little surprised by the debt offering given that VECO has $8.58/share of cash on its balance sheet, but we believe this would suggest VECO is preparing for bigger acquisitions while at the same time it could increase capital return. The raised earnings guidance suggests VECO has accelerated its cost reduction efforts, while the strong bookings were largely expected given the recent announcement of the exclusive order from Osram [N/R]. Overall, we believe the MOCVD space is recovering, and we are incrementally more positive on VECO given strengthened industry demand, but we believe the stock already fully discounts the growth projection in this year."

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 $29.65 yesterday.

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