Deutsche Bank Starts Veeco Instruments Inc. (VECO) at Hold; China Slowdown a Concern; Awaiting MaxBright Success
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Price: $53.58 +0.60%
Rating Summary:
14 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
14 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Deutsche Bank initiates coverage on Veeco Instruments Inc. (NASDAQ: VECO) with a Hold. PT $35.00.
Deutsche analyst says, "Veeco rode the wave of LED chip demand to emerge as one of the largest suppliers of MOCVD tools to the LED industry, holding 45% market share by end 2Q11 (excluding MaxBright). It consistently gained market share from its closest competitor Aixtron (Nasdaq: AIXG) on the back of strong products such as the K465i, which currently holds the largest individual market share according to IMS Research. The company’s share price has fallen 43% since its 52-week peak in June 2011 and appears optically attractive on a valuation perspective. However, Veeco faces several challenges such as tightening credit and delayed fab expansion in China (66% of 1H11 revenue), which could result in a fall in orders and revenue and the softening global demand for LED backlighting, resulting in slower-than-expected LED chip demand. We believe shares are reasonably priced on 2012 estimates we don’t expect much upside to the shares until there is greater clarity on the 2012+ earnings trajectory of the company."
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 $31.81 yesterday.
Deutsche analyst says, "Veeco rode the wave of LED chip demand to emerge as one of the largest suppliers of MOCVD tools to the LED industry, holding 45% market share by end 2Q11 (excluding MaxBright). It consistently gained market share from its closest competitor Aixtron (Nasdaq: AIXG) on the back of strong products such as the K465i, which currently holds the largest individual market share according to IMS Research. The company’s share price has fallen 43% since its 52-week peak in June 2011 and appears optically attractive on a valuation perspective. However, Veeco faces several challenges such as tightening credit and delayed fab expansion in China (66% of 1H11 revenue), which could result in a fall in orders and revenue and the softening global demand for LED backlighting, resulting in slower-than-expected LED chip demand. We believe shares are reasonably priced on 2012 estimates we don’t expect much upside to the shares until there is greater clarity on the 2012+ earnings trajectory of the company."
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 $31.81 yesterday.
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