Needham & Company Reiterates a 'Buy' on Newport (NEWP); Healthy Q3 Bookings & Backlog; Solid Q4 Guidance And Reasonable Preliminary Outlook

Needham & Company reiterates a 'Buy' on Newport Corp. (NASDAQ: NEWP) price target of $18.00.

Needham analyst says, "NEWP reported solid Q3 bookings, gave very respectable Q4 guidance and laid out a convincing case for revenue growth of at least 20% next year as result of the recent acquisitions of Ophir and High Q Technologies, along with expanding operating margins. Bookings for Q3, which reflect the NEWP standalone business (and the small High Q laser business) were solid, particularly considering the sharp decline in the semi-cap market. Overall, the tone of the call was upbeat, as mgmt provided more color on the expected revenue contribution from Ophir in Q4, as well as revenue and margin targets for 2012. NEWP is currently trading at 9x our 2012 estimate, which is at the low end of its historical P/E range going back five years, when its fortunes were much more heavily tied to the more cyclical semi-cap industry." (Needham lowers FY12 EPS estimate from $1.40 to $1.32)�

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 $12.00 yesterday.

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