Noble Financial Downgrades Veeco Instruments Inc. (VECO) to Sell; Concerns Over Korean Market

Noble Financial downgraded Veeco Instruments Inc. (NASDAQ: VECO) from Hold to Sell.

Noble analyst said, "Previously, we had expressed concerns that a more rapid decline in the number of LEDs per LCD TV, coupled with the introduction of higher throughput MOCVD tools and the large number of new entrants, would drive a capacity glut...Based on our analysis, we estimate that there will be 30% to 35% excess MOCVD coating capacity by the end of this year, which will prompt other manufacturers to significantly reduce tool purchases beginning in the second half of this year."

"We now see Veeco's MOCVD tool sales declining from $947 million this year to $560 million in 2012, resulting in a decline of non-GAAP earnings from $5.22 per diluted share this year to $3.14 per diluted share. We have also reduced our non-GAAP earnings for 2013 from $2.99 per diluted share to $2.71 per diluted share."

For more ratings news on Veeco Instruments Inc. click here and for the rating history of Veeco Instruments Inc. click here.

Shares of Veeco Instruments Inc. closed at $48.79 yesterday.

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