Needham & Company Maintains a 'Buy' on Novellus (NVLS); Reduced Guidance at Mid-Q Update, As Expected, But Mgmt More Optimistic
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Price: $2.40 --0%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
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Needham & Company maintains a 'Buy' on Novellus (NASDAQ: NVLS) price target lowered from $38 to $32.
Needham analyst says, "NVLS lowered its 3Q11 bookings and revenue guidance at its mid-quarter update call, we believe it was largely expected given the recent negative data points in the semicap sector. While visibility remains extremely low, we believe management sounded slightly more optimistic than the July earnings call. We believe the sector and NVLS’s business will be approaching a near-term bottom within the next 1-2 quarters. Given that the Street will likely reset estimates to a depressed level, we believe the stock could be ready for a bounce should bookings start to stabilize."
"We cut our 2011 EPS to $3.07 and 2012 to $2.47. Our new PT of $32 is based on a 2011 P/E of 10.4X or 2012 P/E of 13X. We note that higher multiples are appropriate for semicap stocks in a down year."
For more ratings news on Novellus click here and for the rating history of Novellus click here.
Shares of Novellus closed at $27.97 yesterday.
Needham analyst says, "NVLS lowered its 3Q11 bookings and revenue guidance at its mid-quarter update call, we believe it was largely expected given the recent negative data points in the semicap sector. While visibility remains extremely low, we believe management sounded slightly more optimistic than the July earnings call. We believe the sector and NVLS’s business will be approaching a near-term bottom within the next 1-2 quarters. Given that the Street will likely reset estimates to a depressed level, we believe the stock could be ready for a bounce should bookings start to stabilize."
"We cut our 2011 EPS to $3.07 and 2012 to $2.47. Our new PT of $32 is based on a 2011 P/E of 10.4X or 2012 P/E of 13X. We note that higher multiples are appropriate for semicap stocks in a down year."
For more ratings news on Novellus click here and for the rating history of Novellus click here.
Shares of Novellus closed at $27.97 yesterday.
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