Needham & Company on Industrial Growth: Expect In-Line September Quarterly Results; Guidance Likely To Reflect Macro Concerns
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Up: 15 | Down: 11 | New: 13
Rating Summary:
10 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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Needham & Company on Industrial Growth: Expect In-Line September Quarterly Results; Guidance Likely To Reflect Macro Concerns
Needham analyst, James Ricchiuti, said, "Stocks in our coverage universe staged a partial recovery in recent weeks along with the broader market indices after a dismal August and September. Whether this turns out to be head fake remains to be seen. Recent economic data, including global ISM indices, are pointing to slowing growth, but at this point no collapse in demand. Indeed, preannouncement season in our group has been relatively subdued, particularly those capital equipment names with exposure to the industrial sector. Having said that, we expect that those of our coverage companies that provide guidance to reflect some degree of caution, although we believe demand and order trends have remained generally solid across the industrial, research and scientific markets. Those of our cap-equipment companies selling into the electronics market clearly face a more challenging near-term outlook, but three names that we believe are particularly attractive are Coherent (Nasdaq: COHR)(Buy), whose microelectronics business is enjoying solid demand in part from the rapid growth of the AMOLED market, and Electro Scientific Industries (Nasdaq: ESIO)(Buy) and Orbotech (Nasdaq: ORBK)(Buy), both of which are benefiting from the continued healthy market for smart phones and tablets. Other value names we highlight at current prices are FEI Company (Nasdaq: FEIC)(Buy), II-VI (Nasdaq: IIVI)(Buy), LeCroy (Nasdaq: LCRY)(Buy) and Newport Corp. (Nasdaq: NEWP)(Buy). Our top GARP names are Cognex (Nasdaq: CGNX)(Buy), FARO (Nasdaq: FARO)(Buy) and iRobot (Nasdaq: IRBT)(Buy)."
Needham analyst, James Ricchiuti, said, "Stocks in our coverage universe staged a partial recovery in recent weeks along with the broader market indices after a dismal August and September. Whether this turns out to be head fake remains to be seen. Recent economic data, including global ISM indices, are pointing to slowing growth, but at this point no collapse in demand. Indeed, preannouncement season in our group has been relatively subdued, particularly those capital equipment names with exposure to the industrial sector. Having said that, we expect that those of our coverage companies that provide guidance to reflect some degree of caution, although we believe demand and order trends have remained generally solid across the industrial, research and scientific markets. Those of our cap-equipment companies selling into the electronics market clearly face a more challenging near-term outlook, but three names that we believe are particularly attractive are Coherent (Nasdaq: COHR)(Buy), whose microelectronics business is enjoying solid demand in part from the rapid growth of the AMOLED market, and Electro Scientific Industries (Nasdaq: ESIO)(Buy) and Orbotech (Nasdaq: ORBK)(Buy), both of which are benefiting from the continued healthy market for smart phones and tablets. Other value names we highlight at current prices are FEI Company (Nasdaq: FEIC)(Buy), II-VI (Nasdaq: IIVI)(Buy), LeCroy (Nasdaq: LCRY)(Buy) and Newport Corp. (Nasdaq: NEWP)(Buy). Our top GARP names are Cognex (Nasdaq: CGNX)(Buy), FARO (Nasdaq: FARO)(Buy) and iRobot (Nasdaq: IRBT)(Buy)."
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