Needham & Company Reiterates a 'Buy' on Electro Scientific Industries (ESIO); Reducing 2H, F13 Estimates On Semi Weakness

Needham & Company reiterates a 'Buy' on Electro Scientific Industries (NASDAQ: ESIO) price target lowered from $27 to $22.

Needham analyst says, "ESIO shares have fallen 22% since the company reported FQ1 results in late July, under-performing the semi-cap sector in general over the same period. Although the deteriorating outlook for DRAM cap-ex and weakness in the passive components business is likely to impact business in the near term, we expect ESIO’s new LED tools and new wafer dicing tool, as well as the production ramp in the iPhone 5, to drive bookings in F2H and F13. ESIO shares are trading at 8x our F12 EPS estimate, adjusting for net cash of ~$7, represent an attractive value, in our view."

"We are lowering our F12 non-GAAP EPS estimate to $0.95 from $1.05 on revenues of $315M (up 23%) and have trimmed our F13 EPS estimate to $1.05 from $1.25."

For more ratings news on Electro Scientific Industries click here and for the rating history of Electro Scientific Industries click here.

Shares of Electro Scientific Industries closed at $15.02 yesterday.

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