DA Davidson Starts Rudolph Technologies (RTEC) at Buy; Leveraged to Fast Growing Segments; New Markets Driving Growth

DA Davidson initiates coverage on Rudolph Technologies (NASDAQ: RTEC) with a Buy. PT $17. (5 Yr/Long-Term PT $30)

DA analyst says, "After two years of underinvestment, we believe the industry is only just over a year into a strong 3-year capital spending cycle, largely fueled by growing demand for consumer electronics. Our current estimate that calls for 15% spending growth in 2011 and 10% in 2012 should be a strong catalyst for Rudolph’s inspection and metrology business...Rudolph holds the number one market share position in 4 of its 5 served metrology and macro inspection markets, and gained meaningful share in 2010. We expect these segments to continue to outpace the broader equipment market."

"Move towards advanced multi-chip packages should be a new catalyst...Huge LED market opportunity ahead...Clean balance sheet and strong cash generation...Modeling 13% revenue growth in 2011, 11% in 2012. Our current estimates call for revenue and GAAP earnings of $220 million and $1.00 in 2011 and $244 million and $1.25 in 2012. Consensus has standardized on GAAP."

For more ratings news on Rudolph Technologies click here and for the rating history of Rudolph Technologies click here.

Shares of Rudolph Technologies closed at $10.94 yesterday.

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