Needham & Company Reiterates a 'Buy' on LTX-Credence (LTXC); Coming off the Bottom with a New Product
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Price: $9.35 --0%
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 1 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 LTX-Credence (NASDAQ: LTXC) price target raised from $7.00 to $9.00.
Analyst, Vernon Essi Jr, said, "LTXC reported JanQ2 results that were below expectations and unfortunately provided guidance that was again just below consensus. Management remained confident that JanQ2 was the bottom of the current cycle and is expecting top line revenue potential to be 20% higher than in the previous cycle (implying ~$90M per Q). This compares to our highest revenue level for the next 6 quarters of $48M. LTXC is now focusing all efforts towards accelerating its top line growth by penetrating existing and new customers; this will be augmented by the addition of Pascal Ronde to its executive team. LTXC was also quite bullish on the incremental $400M SAM opportunity provided by its new ASSP tester. We reduced our FY12E revenue/EPS from $142M/($0.26) to $123M/($0.48) and our FY13 estimates from $213M/$0.55 to $193M/$0.45. However, we now believe the ATE industry is at a cyclical bottom and are valuing LTXC shares on a PE basis vs. EV/sales basis on the recent down cycle."
For an analyst ratings summary and ratings history on LTX-Credence click here. For more ratings news on LTX-Credence click here.
Shares of LTX-Credence closed at $7.02 yesterday.
Analyst, Vernon Essi Jr, said, "LTXC reported JanQ2 results that were below expectations and unfortunately provided guidance that was again just below consensus. Management remained confident that JanQ2 was the bottom of the current cycle and is expecting top line revenue potential to be 20% higher than in the previous cycle (implying ~$90M per Q). This compares to our highest revenue level for the next 6 quarters of $48M. LTXC is now focusing all efforts towards accelerating its top line growth by penetrating existing and new customers; this will be augmented by the addition of Pascal Ronde to its executive team. LTXC was also quite bullish on the incremental $400M SAM opportunity provided by its new ASSP tester. We reduced our FY12E revenue/EPS from $142M/($0.26) to $123M/($0.48) and our FY13 estimates from $213M/$0.55 to $193M/$0.45. However, we now believe the ATE industry is at a cyclical bottom and are valuing LTXC shares on a PE basis vs. EV/sales basis on the recent down cycle."
For an analyst ratings summary and ratings history on LTX-Credence click here. For more ratings news on LTX-Credence click here.
Shares of LTX-Credence closed at $7.02 yesterday.
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