Oppenheimer Reiterates Outperform, $22 PT On Nanometrics

In a note out today, Oppenheimer reiterated an outperform rating and $22 price target on Nanometrics NANO, the maker of metrology systems used primarily in the fabrication of semiconductors. “Our price target of $22 is now based on 1.2x price to sales. External factors such as Hynix's desire to curb spending earlier in 2011, do not detract, in our view, from NANO gaining share at TSMC, the important story for 2012. In fact, our current checks indicate increased capex from Hynix next year. We write this note to adjust estimates from the NANDA buy amounting to $23M in cash and $0.03-0.05/share in operating expenses for the partial C4Q11 quarter and then dial down estimates for 2012 to reflect near-term uncertainty from the European sovereign debt crisis and to not keep the bar for NANO too high, when the story is yet to be written,” Oppenheimer said in the note.