Bank Of America Merrill Lynch Reports Increased EUV R&D Will Lead To Long-Term Positive For Cymer (CYMI)

In a recent report, Bank of America Merrill Lynch has projected a long-term positive for Cymer CYMI after CFO, Paul Bowman, presented at the annual SmidCap conference and reiterated continuation of the EUV (Extreme UltraViolet) R&D. The price target on CYMI remains at $57.00. In the report, Bank of America Merrill Lynch said, "While the stock sold off post earnings call due to increasing R&D, we view this as a near-term concern. Longer term, CYMI's top-line could grow significantly since the ASP of an EUV source could be ~$20M vs. $2M today for DUV (Deep UV). Furthermore, once EUV is production-worthy, the R&D should scale down, improving drop-thru to the bottom line." Cymer closed yesterday at $50.00.