Needham & Company Upgrades Orbotech Ltd. (ORBK) to Buy

Needham & Company upgraded Orbotech Ltd. (NASDAQ: ORBK) from Hold to Buy with a price target of $20.00.

Analyst James Ricchiuti commented, "We are upgrading our rating on ORBK to Buy from Hold following the roughly 10% pullback in the shares since the company reported Q3 results earlier this month and based on increased confidence in our estimates looking out over the next year. We believe ORBK has the potential to see each of its major businesses -- PCB, FPD and the newly acquired Semi IC and Systems -- performing well in 2015. Additionally, we believe ORBK's nascent solar power equipment business has the potential to provide an upside catalyst. ORBK shares appear inexpensive measured off a variety of metrics, including 1x EV/2015 sales, 6x EV/adjusted 2015 EBITDA and less than 7x our out-year non-GAAP EPS estimate. We are introducing a 12-month target price of $20, or 9x or our 2015 non-GAAP EPS estimate."

For an analyst ratings summary and ratings history on Orbotech Ltd. click here. For more ratings news on Orbotech Ltd. click here.

Shares of Orbotech Ltd. closed at $14.51 yesterday.

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