Citi Maintains Hold on Novellus Systems

Citi is out with its report today on Novellus Systems NVLS, maintaining Hold. In a note to clients, Citi writes, "Owing to its election to buy back more stock with the proceeds from the recent offering, we are adjusting estimates just slightly higher (2011/2012 EPS estimates from $3.14/$1.38 to $3.18/$1.39) although it appears the Street had yet to bake in any of the buyback. While positive sentiment on CQ3 could be seen as 'new', this is largely consistent with sentiment from other equipment companies the past several weeks. We are emboldened by orders now having come down in-line w/the last mid-cycle correction, but we still await confirmation that big customers like Samsung and TSMC are truly coming back to the table. Maintain Hold (2H) rating and $37 target." Shares of NVLS closed Tuesday at $36.27, up 1.12% from Friday's close.