Janney Montgomery Scott Upgrades Veeco Instruments (VECO) to Neutral

November 19, 2008 7:48 AM EST

Janney Montgomery Scott upgrades Veeco Instruments (Nasdaq: VECO) from Sell to Neutral.

Janney analyst says, "Even though we are lowering our data storage estimates, which pushes our 2009 EPS lower and thus a lower fair value, the 49% drop in the stock price since the beginning of November has brought the stock price in line with future earnings potential, in our opinion. In the last two weeks the market has realized that Veeco’s customers are looking into a very tough year for HB-LEDs & Solar and Data Storage due to the weak consumer demand, credit crunch, lower oil prices, continued automotive market issues, and customers digesting previous tool purchases. Applied Material (Nasdaq: AMAT) confirmed our suspicions on its earnings call by guiding bookings down 30% sequentially, laying off 1,800 employees, and halting its stock buy-back program."

Veeco Instruments Inc. (Veeco) designs, manufactures, markets and services a line of equipment primarily used by manufacturers in the data storage, high-brightness light emitting diode (HB-LED), solar, wireless and semiconductor industries.

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