Kaufman Bros. Reiterates a 'Buy' on Veeco Instruments (VECO); Record Orders Support a Promising Outlook
Tweet
Share
E-mailGet Alerts VECO Hot Sheet
Price: $52.40 -2.2%
Rating Summary:
14 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Kaufman Bros. reiterates a 'Buy' on Veeco Instruments Inc. (NASDAQ: VECO) price target lowered by $1 to $59.
Kaufman analyst says, "While we think most investors were expecting a slowdown in orders during the quarter, the company actually reported an
acceleration in order rates resulting in a record level of orders in 2Q11. The company reported $311 million of new orders, which was up 38%
sequentially and almost 5% Y/Y. This resulted in a book-to-bill ratio of 1.17x. Importantly, this strong order growth was driven largely by China, while
Korean customers have yet to resume orders. Given the new incentives for LEDs in Korea, we expect this market to potentially accelerate in 2H11 and
even more so in 2012. The company's key new product, the MaxBright, now represents ~40% of total bookings and should continue to penetrate new
and existing accounts. Backlog was also at record levels at $558 million. This represents over six months of production, at current rates, which should
serve to mitigate some of the visibility challenges noted."
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 $40.94 yesterday.
Kaufman analyst says, "While we think most investors were expecting a slowdown in orders during the quarter, the company actually reported an
acceleration in order rates resulting in a record level of orders in 2Q11. The company reported $311 million of new orders, which was up 38%
sequentially and almost 5% Y/Y. This resulted in a book-to-bill ratio of 1.17x. Importantly, this strong order growth was driven largely by China, while
Korean customers have yet to resume orders. Given the new incentives for LEDs in Korea, we expect this market to potentially accelerate in 2H11 and
even more so in 2012. The company's key new product, the MaxBright, now represents ~40% of total bookings and should continue to penetrate new
and existing accounts. Backlog was also at record levels at $558 million. This represents over six months of production, at current rates, which should
serve to mitigate some of the visibility challenges noted."
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 $40.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Veeco Announces Upcoming Investor Events
- Powell Industries (POWL) PT Lowered to $235 at Cantor Fitzgerald
- Wolverine World Wide (WWW) PT Raised to $31 at UBS on Growth, EPS Upside Potential
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Kaufman Bros.Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
