Needham & Company Maintains Photronics (PLAB) at Buy, Trims EPS Estimates
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Price: $7.73 +2.25%
Rating Summary:
2 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
2 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade PLAB Now!
Today Needham & Company maintained a Buy rating and $8 price target on Photronics (NASDAQ: PLAB).
Photronics cut F3Q12 (Jul) revenue guidance to below the prior range but only trimmed earnings guidance to the lowerend of prior guidance range. The company saw some softening demand during the last few weeks in July, predominately in memory IC. Analyst Y. Edwin Mok believes weak macro trends also slowed down customer demand for masks.
"However," he said, "we note that the updated guidance actually implies higher net margins, as we believe the company’s prior cost-savings efforts are driving improved profitability in the financial model. Given that the stock is trading below its P/TBV, we believe PLAB is a value name with meaningful upside potential."
Due to lower guidance, analysts trimmed FY12 non-GAAP EPS to $0.50 and FY13 to $0.63.
For an analyst ratings summary and ratings history on Photronics click here. For more ratings news on Photronics click here.
Shares of Photronics closed at $6.14 yesterday, with a 52 week range of $4.58-$7.70.
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Photronics cut F3Q12 (Jul) revenue guidance to below the prior range but only trimmed earnings guidance to the lowerend of prior guidance range. The company saw some softening demand during the last few weeks in July, predominately in memory IC. Analyst Y. Edwin Mok believes weak macro trends also slowed down customer demand for masks.
"However," he said, "we note that the updated guidance actually implies higher net margins, as we believe the company’s prior cost-savings efforts are driving improved profitability in the financial model. Given that the stock is trading below its P/TBV, we believe PLAB is a value name with meaningful upside potential."
Due to lower guidance, analysts trimmed FY12 non-GAAP EPS to $0.50 and FY13 to $0.63.
For an analyst ratings summary and ratings history on Photronics click here. For more ratings news on Photronics click here.
Shares of Photronics closed at $6.14 yesterday, with a 52 week range of $4.58-$7.70.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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