Needham & Company Maintains a 'Buy' on Novellus (NVLS); Raise PT to Reflect Acquisition Offer; Other Bidder Possible
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Price: $2.40 --0%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Novellus (NASDAQ: NVLS) price target of $51.75.
Needham analyst says, "We maintain our Buy on NVLS and raise our price target to $51.75 (from $40) following the announcement of LRCX buying the company. The all-stock offer represents a 28% premium to yesterday’s closing prices, and the deal has an implied value of $44.42 per NVLS share, surpassing our prior price target of $40. Given the size of the deal, TEL (8035-JP, N/R) comes to mind as a possible competitive bidder, but we believe Lam Research (Nasdaq: LRCX) is a better fit on products and culture. Our Buy rating and increased price target are based on 1.125X our $46 target for LRCX, and we continue to believe in NVLS’s strong positions at leading capex spenders and model leverage driving earnings growth. Given the regulatory timing, we expect the deal to close in mid-2012."
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 $34.70 yesterday.
Needham analyst says, "We maintain our Buy on NVLS and raise our price target to $51.75 (from $40) following the announcement of LRCX buying the company. The all-stock offer represents a 28% premium to yesterday’s closing prices, and the deal has an implied value of $44.42 per NVLS share, surpassing our prior price target of $40. Given the size of the deal, TEL (8035-JP, N/R) comes to mind as a possible competitive bidder, but we believe Lam Research (Nasdaq: LRCX) is a better fit on products and culture. Our Buy rating and increased price target are based on 1.125X our $46 target for LRCX, and we continue to believe in NVLS’s strong positions at leading capex spenders and model leverage driving earnings growth. Given the regulatory timing, we expect the deal to close in mid-2012."
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 $34.70 yesterday.
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