Barclays Maintains an 'Equalweight' on Brooks Automation (BRKS); Adjacent Markets Expected to Support 2H11 Outlook

Barclays maintains an 'Equalweight' on Brooks Automation Inc. (NASDAQ: BRKS), PT $12.

Barclays analyst says, "We See Sentiment Approaching an Inflection Point: In line with our call this morning on the overall semiconductor equipment group, we view negative sentiment on BRKS' core semi business as approaching an inflection point in the near term. Layer in management's confidence in a 2HCY11 growth momentum to be supported at a minimum by adjacent market expansion (i.e., LED and MEMS), and we see valuation at 1.5x book value (excluding cash increase from Contract Manufacturing sale) as offering a relatively attractive risk/reward."

"Based on the revised guidance coupled with incremental upside to our previous 2H11 gross margin expectations, we raise our CY11 estimates to $685M/$1.41 (consensus $681M/$1.41). For CY12, our estimates move to $628M/$1.33 from $586M/$1.30 (consensus $646M/$1.29)."

For more ratings news on Brooks Automation Inc. click here and for the rating history of Brooks Automation Inc. click here.

Shares of Brooks Automation Inc. closed at $10.51 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• JPMorgan Downgrades Limbach Holdings (LMB) to Underweight
• UBS Downgrades Vicinity Centers (VCX:AU) (CNRAF) to Neutral
• Weibo Corp (WB) PT Lowered to $6.50 at BofA Securities