Bank of America Merrill Lynch Maintains Buy on Novellus

Bank of America Merrill Lynch is out with its report today on Novellus NVLS, maintaining Buy. In a note to clients, Bank of America Merrill Lynch writes, "NVLS management maintained their bookings, revenue, shipment and GM guidance for the June Q (F2Q), but suggested that 2Q bookings were tracking towards the lower end of the range (down 10-25%); and that the push-outs from the June Q should manifest in the September Q (F3Q), as we had anticipated. We now forecast June orders down 20% sequentially (prior forecast was down 15%) and September to grow in the 15 - 20% range (no change to the sum of our 2Q and 3Q bookings of ~$720M). More importantly, we view the optimism around the orders coming back in C2H as a positive to the stock and for the near-term sentiment towards the cycle. We maintain our Buy on NVLS." Bank of America Merrill Lynch maintains a $40 PO on NVLS. Shares of NVLS closed Tuesday at $36.27, up 1.12% from Friday's close.