Needham & Company Reiterates a 'Buy' on Newport Corp (NEWP); 2012 Outlook Solid...Offsets Cyclical Weakness In Semi-Cap Market
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Price: $6.84 +1.79%
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Newport Corp. (NASDAQ: NEWP) price target lowered from $24 to $18.
Needham analyst says, "Mgmt hosted a conference call after the market close yesterday to discuss the closing of the Ophir acquisition and update its Q3 guidance. We estimate that Ophir will add ~$30M to revenues in Q4 and ~$140M in 2012. Not surprisingly, NEWP’s semi-cap OEM business has slowed significantly, although conditions in the Life and Health Science and Research markets remain healthy. With Ophir, NEWP’s revenues are more broadly balanced, which should provide more stability to the company in the current economic environment. We are reducing our 2012 EPS estimate to reflect the slowdown as well as a more normalized tax rate next year. NEWP is currently trading at 7x our revised 2012 estimate, an attractive valuation even taking into account the compression in multiples following the steep market correction."
For more ratings news on Newport Corp. click here and for the rating history of Newport Corp. click here.
Shares of Newport Corp. closed at $10.47 yesterday.
Needham analyst says, "Mgmt hosted a conference call after the market close yesterday to discuss the closing of the Ophir acquisition and update its Q3 guidance. We estimate that Ophir will add ~$30M to revenues in Q4 and ~$140M in 2012. Not surprisingly, NEWP’s semi-cap OEM business has slowed significantly, although conditions in the Life and Health Science and Research markets remain healthy. With Ophir, NEWP’s revenues are more broadly balanced, which should provide more stability to the company in the current economic environment. We are reducing our 2012 EPS estimate to reflect the slowdown as well as a more normalized tax rate next year. NEWP is currently trading at 7x our revised 2012 estimate, an attractive valuation even taking into account the compression in multiples following the steep market correction."
For more ratings news on Newport Corp. click here and for the rating history of Newport Corp. click here.
Shares of Newport Corp. closed at $10.47 yesterday.
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