Needham & Company Maintains a 'Strong Buy' on Nova Measuring Instruments (NVMI); Believe Lower Guidance is Largely Discounted in Share Price

Needham & Company maintains a 'Strong Buy' on Nova Measuring Instruments (NASDAQ: NVMI) price target of $16.00.

Needham analyst says, "Heading into tomorrow’s 2Q11 earnings report, we expect NVMI to report inline results but provide lower guidance. However, given the negative guidance provided by most peers, we believe expectation is low and a weaker outlook is largely priced in the stock. While poor order visibility will likely to continue within the group, we remain positive on the story longer-term. We continue to believe NVMI is gaining share in the growing OCD sector, and the company will outgrow the industry in the next 2 years. We believe NVMI warrants a premium valuation based on better growth trajectory, and we recommend investors buy the stock on any pull-backs."

For more ratings news on Nova Measuring Instruments click here and for the rating history of Nova Measuring Instruments click here.

Shares of Nova Measuring Instruments closed at $8.54 yesterday.

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