Needham & Company Upgrades Ultra Clean (UCTT) to Buy
Tweet Send to a FriendGet Alerts UCTT Hot Sheet
Price: $5.88 -3.13%
Rating Summary:
4 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
4 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade UCTT Now!
Needham & Company upgraded Ultra Clean (NASDAQ: UCTT) from Hold to Buy with a price target of $7.50.
The firm comments, "We are upgrading UCTT to Buy from Hold based on an improved outlook of the semicap sector and our increased confidence in its revenue growth trajectory and profitability. Recent commentaries from large semicap customers and the large chipmakers suggest equipment orders have troughed and business will sequentially trend higher in the next few quarters. Coupled with several recent wins and the bottoming of its non-semi businesses, we believe UCTT's sales are poised to outperform peers as the industry recovers. Additionally, we believe mgmt has several levers to improve its profitability and coupled with better top-line growth, we see upside to Street’s estimates. We project UCTT can earn ~$0.81/sh on a mid-cycle revenue level and based on this earnings power, we believe the stock is undervalued at this time. We recommend small-cap investors looking to participate in the rebound of the semicap sector should Buy UCTT ahead of its 4Q12 report on February 19. We assign a PT of $7.50, which translates to a 2014E P/E of 17X or a mid-cycle P/E of 9X."
For an analyst ratings summary and ratings history on Ultra Clean click here. For more ratings news on Ultra Clean click here.
Shares of Ultra Clean closed at $5.89 yesterday, with a 52 week range of $4.33-$9.35.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm comments, "We are upgrading UCTT to Buy from Hold based on an improved outlook of the semicap sector and our increased confidence in its revenue growth trajectory and profitability. Recent commentaries from large semicap customers and the large chipmakers suggest equipment orders have troughed and business will sequentially trend higher in the next few quarters. Coupled with several recent wins and the bottoming of its non-semi businesses, we believe UCTT's sales are poised to outperform peers as the industry recovers. Additionally, we believe mgmt has several levers to improve its profitability and coupled with better top-line growth, we see upside to Street’s estimates. We project UCTT can earn ~$0.81/sh on a mid-cycle revenue level and based on this earnings power, we believe the stock is undervalued at this time. We recommend small-cap investors looking to participate in the rebound of the semicap sector should Buy UCTT ahead of its 4Q12 report on February 19. We assign a PT of $7.50, which translates to a 2014E P/E of 17X or a mid-cycle P/E of 9X."
For an analyst ratings summary and ratings history on Ultra Clean click here. For more ratings news on Ultra Clean click here.
Shares of Ultra Clean closed at $5.89 yesterday, with a 52 week range of $4.33-$9.35.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Cantor Fitzgerald Upgrades Cubist Pharmaceuticals (CBST) to Hold
- Macquarie Upgrades BlackRock (BLK) to Outperform
- Hewlett-Packard Company (HPQ) Tops Q2 EPS by 6c as Sales Slide 10%
Create E-mail Alert Related Categories
UpgradesRelated Entities
Needham & Company, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
