Needham & Company Maintains a 'Buy' on Electro Scientific Industries (ESIO); Pause Micromachining Orders Continues, Although Funnel Active

Needham & Company maintains a 'Buy' on Electro Scientific Industries (NASDAQ: ESIO) price target raised from $16 to $18.

Needham analyst says, "Bookings for FQ3 showed modest q/o/q improvement, and there are signs pointing to a gradual recovery in demand in several of ESIO’s markets. Flex-interconnect orders and backlog are at record levels, driven by smart phone and tablets. Passive components showed modest improvement, and even semi showed a slight uptick in orders. That said, activity in these areas, as well as new products for the LED and 3D packaging markets, are unlikely to provide a near-term boost to the stock. In fact, ESIO’s shares in the short run may be hard pressed to move meaningfully higher without follow-on orders for the company’s advanced micro-fabrication tools (aka the Apple business). Mgmt said the funnel remains active, although our estimates do not assume large orders in the near term. As a result, we expect ESIO to remain at break-even to a slight loss over the next several quarters. ESIO has taken a number of shareholder-friendly moves, including declaration of a dividend and expansion of a buyback program, which should bolster shareholder value." (Needham cuts FY13 EPS estimate from $0.60 to $0.17)

For an analyst ratings summary and ratings history on Electro Scientific Industries click here. For more ratings news on Electro Scientific Industries click here.

Shares of Electro Scientific Industries closed at $16.65 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• OncoCyte Corp (OCX) PT Raised to $4.25 at Needham
• SeaChange (SEAC) Announces an Agreement to be Acquired by Enghouse and Termination of Previously Announced Proposed Acquisition by Partner One
• Boston Scientific (BSX) PT Raised to $83 at Stifel