Bank of America Merrill Lynch Has Buy On Novellus

Bank of America Merrill Lynch is out with a research report on Novellus NVLS and it has a Buy rating and a $36 price target. In a note to clients, Novellus writes, "Novellus management will host their 3Q mid-quarter update on Wednesday, August 31st AMC. Given the ongoing weakness in the industry, we expect September (F3Q11) orders to trend toward the lower end of the guided range of flat to down 20%. We are currently forecasting revenue/EPS of $325M/$0.71, compared to the guidance of $300-340M/$0.60-$0.75. While we continue to expect a broad-based recovery in industry bookings in 2Q12, NVLS remains one of our few Buy-rated stocks, given the potential for share gains and earnings leverage once the orders begin to recover." Shares of NVLS lost 61 cents yesterday to close at $27.86.