Piper Jaffray Initiates Coverage on Veeco Instruments (VECO) with an Overweight; Currently Trading At Discount Vs. Peers

November 9, 2009 7:14 AM EST

Piper Jaffray & Co. initiates coverage on Veeco Instruments (Nasdaq: VECO) with an Overweight rating. Price target $30.

Piper analyst says, "We expand our clean tech industry research coverage to include VEECO Instrument Inc, assigning an Overweight rating and 12-month price target of $30. VECO provides processing equipment solutions to the LED, solar, and data storage industry and metrology instruments and solutions to academic and industrial research and production facilities. Compared with VECO's overall estimated CAGR of roughly 26%, VECO's LED and solar segment's (50% of 2009E revenue) 2009-2013E growth CAGR is even more impressive at an estimated 42% noting the following: The traditional light bulb is fast becoming obsolete; LED technology/cost improvements afoot; VECO is key enabler; VECO is best leverage to manufacturing growth in China: VECO is best leveraged to the largest LED customers in China; Visibility to growth and margin improvements: VECO's strong $287M backlog provides visibility. We expect $300M+ order backlog at YE09. Further its outsourcing strategy allows manufacturing flexibility and highly levered earnings potential."

To see more analyst ratings on VECO Click Here.

Veeco Instruments Inc. and its subsidiaries design and manufacture solutions for customers in the high brightness light emitting diode (HB-LED), solar, data storage, semiconductor, scientific research, and industrial markets worldwide.

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