Needham & Company Reiterates a 'Buy' on Orbotech Ltd. (ORBK); Estimates Revised To Reflect Recent Follow-On Offering

Needham & Company reiterates a 'Buy' on Orbotech Ltd. (NASDAQ: ORBK), PT $20.

Needham analyst says, "Following last month's offering of 7.7M shares (including the over-allotment) at $12.50/share, we are adjusting our EPS estimates to reflect the new share count. The follow-on offering raised net proceeds of ~$91.5M and has significantly strengthened ORBK's balance-sheet. Meanwhile, we believe demand remains strong for ORBK's equipment across most of its product groups, particularly for its laser direct imaging tool. ORBK shares are trading at 6x our 2012 EPS estimate adjusting for net cash of nearly $4.00 (which includes proceeds from the recent offering). Given this attractive valuation, we reiterate our Buy rating."

"Following the recent follow-on offering, which raised net proceeds of $91.5M, we are adjusting our 2011 GAAP EPS estimate to $1.40 from $1.56 (guidance post-deal is $1.35-$1.40 GAAP) and 2012 EPS estimate to $1.50 from $1.75. We are raising our 2011 revenue estimate to $577M from $572M vs. guidance of $560-580M."

For more ratings news on Orbotech Ltd. click here and for the rating history of Orbotech Ltd. click here.

Shares of Orbotech Ltd. closed at $12.51 yesterday.

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