UPDATE: Dougherty & Co. Upgrades Ultra Clean (UCTT) to Buy But Fine Tunes Estimates to be More Conservative
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Price: $84.93 -8.59%
Rating Summary:
9 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co is upgrading shares of Ultra Clean (NASDAQ: UCTT) to a Buy rating from its previous rating of Neutral and is maintaining its $14.50 price target.
The firm reports that it lowered its sector rating on semiconductor equipment names to Neutral due to our concern that the Japanese disaster could temporarily impact the industry’s supply chain, but recent trends suggests the slowdown has largely been discounted and baring a more pronounced downturn, the shares represent attractive valuations.
In Q1 non-semiconductor business represented 20% of the company's total revenue and the firm believes that this will increase as time goes with LED revenue driving the growth. It also anticipates that margins will increase.
Dougherty & Co comments, "All, in all, we believe UCTT is poised to outgrow pure semiconductor plays. Our confidence has improved that the industry slowdown is a near-term factor, and that growth will re-emerge during 2H11. At its current level, UCTT has an attractive risk/reward profile."
The firm is lowering its Q3 sales and EPS estimates from $134 million and $0.29 to $125.1 million and $0.25 It is also lowering its Q4 sales from $141.5 million to $140.1 million. FY11 sales and EPS estimates were cut from $530.3 million and $1.15 to $520.1 million and $1.11, while is FY12 estimates went from $606.3 million and $1.48 to $584 million and $1.44.
For more ratings news on Ultra Clean click here and for the rating history of Ultra Clean click here.
Shares of Ultra Clean closed at $9.70 yesterday.
The firm reports that it lowered its sector rating on semiconductor equipment names to Neutral due to our concern that the Japanese disaster could temporarily impact the industry’s supply chain, but recent trends suggests the slowdown has largely been discounted and baring a more pronounced downturn, the shares represent attractive valuations.
In Q1 non-semiconductor business represented 20% of the company's total revenue and the firm believes that this will increase as time goes with LED revenue driving the growth. It also anticipates that margins will increase.
Dougherty & Co comments, "All, in all, we believe UCTT is poised to outgrow pure semiconductor plays. Our confidence has improved that the industry slowdown is a near-term factor, and that growth will re-emerge during 2H11. At its current level, UCTT has an attractive risk/reward profile."
The firm is lowering its Q3 sales and EPS estimates from $134 million and $0.29 to $125.1 million and $0.25 It is also lowering its Q4 sales from $141.5 million to $140.1 million. FY11 sales and EPS estimates were cut from $530.3 million and $1.15 to $520.1 million and $1.11, while is FY12 estimates went from $606.3 million and $1.48 to $584 million and $1.44.
For more ratings news on Ultra Clean click here and for the rating history of Ultra Clean click here.
Shares of Ultra Clean closed at $9.70 yesterday.
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