Needham & Company Reiterates a 'Buy' on Novellus (NVLS); Raised Bookings Guidance On the Strength of Recovery

Needham & Company reiterates a 'Buy' on Novellus (NASDAQ: NVLS) price target raised from $37 to $40.

Needham analyst says, "NVLS tightened its 4Q11 bookings guidance to the high-end of the range on its mid-quarter update call. Management sounded optimistic that order strength could extend into 2012 based on improved foundry utilization rates across the board and strengthened NAND investments. The commentary confirms our view that the semicap sector is in an early stage of a cyclical rebound. We prefer NVLS over mid/large-cap semi equipment stocks for its strong positions at leading capex spenders, low exposure to second-tiered DRAM customers, improved leverage of its financial model and aggressive buyback program."

Needham raises FY12 EPS estimate from $2.90 to $3.05.

For an analyst ratings summary and ratings history on Novellus click here. For more ratings news on Novellus click here.

Shares of Novellus closed at $35.60 yesterday.

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