Needham & Company Starts Veeco Instruments Inc. (VECO) at Hold; Limited by Weakening Sector Fundamentals
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Price: $54.40 +3.82%
Rating Summary:
14 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
14 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Needham & Company initiates coverage on Veeco Instruments Inc. (NASDAQ: VECO) with a Hold.
Needham analyst says, "Veeco is one of the two leading suppliers of MOCVD equipment, a key process in LED production. While we are positive on the long-term growth trajectory of LED, we are concerned that the overcapacity of MOCVD will persist for the next 12-18 months, resulting in lower revenue/bookings for Veeco. While Veeco has done a great job gaining market share over the last 3 years, we believe its higher exposure to a slowdown in China than Aixtron will result in share loss in 2012. We also expect its data storage business to remain weak in the near term, as the Thailand flood has resulted in shortages in other part of the HDD supply chain, reducing the need to add new HDD head capacities. We see further downside to Street estimates, and we believe incremental negative datapoints on the MOCVD sector will continue to weigh on the stock price. While the stock is discounting some of the downside, we recommend investors wait for a bottom."
For an analyst ratings summary and ratings history on Veeco Instruments Inc. click here. For more ratings news on Veeco Instruments Inc. click here.
Shares of Veeco Instruments Inc. closed at $22.27 yesterday.
Needham analyst says, "Veeco is one of the two leading suppliers of MOCVD equipment, a key process in LED production. While we are positive on the long-term growth trajectory of LED, we are concerned that the overcapacity of MOCVD will persist for the next 12-18 months, resulting in lower revenue/bookings for Veeco. While Veeco has done a great job gaining market share over the last 3 years, we believe its higher exposure to a slowdown in China than Aixtron will result in share loss in 2012. We also expect its data storage business to remain weak in the near term, as the Thailand flood has resulted in shortages in other part of the HDD supply chain, reducing the need to add new HDD head capacities. We see further downside to Street estimates, and we believe incremental negative datapoints on the MOCVD sector will continue to weigh on the stock price. While the stock is discounting some of the downside, we recommend investors wait for a bottom."
For an analyst ratings summary and ratings history on Veeco Instruments Inc. click here. For more ratings news on Veeco Instruments Inc. click here.
Shares of Veeco Instruments Inc. closed at $22.27 yesterday.
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