Kaufman Cuts Price Target on Veeco Instruments (VECO) Following Slowing Demand in 2H11
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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
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Kaufman Bros. is reaffirming its Buy rating on shares of Veeco Instruments Inc. (NASDAQ: VECO) while reducing its price target from $59 to $40.
The firm is lowering its 2011 revenue estimate from $1.07 billion to $1.05 billion and is adjusting the rest of its estimates to account for a potential slowdown in MOCVD shipments. Kaufman is also lowering its 2011 EPS estimate from $5.33 to $5.14, which is well above the consensus of $4.90 but below the company's guidance. They note that the Street may be predicting large cancellations of delays.
Demand should pick back up in 2012 and should be driven by Chinese and Korean customers who haven't resumed orders yet.
An analyst at Kaufman comments, "The new LED subsidies in Korea should incentivize firms to resume production, and at a faster pace than current expectations. Notably, we expect general lighting to be an important end market for VECO."
The firm is lowering its 2011 EPS estimate from $5.33 to $5.14 and is maintaining its 2012 estimate of $4.00.
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 $26.94 yesterday.
The firm is lowering its 2011 revenue estimate from $1.07 billion to $1.05 billion and is adjusting the rest of its estimates to account for a potential slowdown in MOCVD shipments. Kaufman is also lowering its 2011 EPS estimate from $5.33 to $5.14, which is well above the consensus of $4.90 but below the company's guidance. They note that the Street may be predicting large cancellations of delays.
Demand should pick back up in 2012 and should be driven by Chinese and Korean customers who haven't resumed orders yet.
An analyst at Kaufman comments, "The new LED subsidies in Korea should incentivize firms to resume production, and at a faster pace than current expectations. Notably, we expect general lighting to be an important end market for VECO."
The firm is lowering its 2011 EPS estimate from $5.33 to $5.14 and is maintaining its 2012 estimate of $4.00.
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 $26.94 yesterday.
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