Veeco Instruments (VECO) Ramps As Big and New Contract Win Seen

Shares fo Veeco Instruments Inc. (NASDAQ: VECO) are seeing a nice upside move Tuesday afternoon following some bullish analyst commentary suggesting a possible big, new win.

UBS analyst Stephen Chin said checks found that current customer HC Semitek plans to invest $284M to build a new LED fab in Zhangjiagang (Jiangsu) over the next 3 years.

"Our checks also find that HC Semitek plans to equip this new fab with 12 units of Veeco's 4 chamber MaxBright tool (we estimate $8M/tool) running 4" wafers to reach a monthly capacity of 35K 4-inch equivalent wafers by 2016," he said.

In addition to the new fab, Chin sees more orders for Veeco from HC Semitek's existing LED fab in Wuhan (Hubei).

"We estimate that this existing fab could take an additional 38 more single chamber MOCVD tools (K465i equivalent) over the next 2 years," the analyst commented.

HC Semitek may add EPS of $0.51 over next 3 years, he said, although he did not change EPS estimates yet.


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 last traded at $34.53, up 3.2 percent.

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