While results were largely in-line w/Street, Veeco Instruments VECO is no longer beating and raising, in part due to some revenue timing issues in China. The official launch of the new MaxBright tool should both help margins and drive share even higher. That said, the fundamental risk here remains skewed to the downside as it is hard to see LED customers in Taiwan/Korea coming roaring back in 2H:11 to even partially offset what should be a precipitous decline in China orders.
Positives include MaxBright as a game-changer and should allow VECO to keep
gaining share; and it could bring Taiwan/Korea customers back to order table. Negatives include: VECO now acknowledges China orders could weaken mid-
CY11; and based on sub-50% utilization rate and lower capex, big hope for
Korea/Taiwan recovery in 2H could be too optimistic.
Citi has a Hold rating and $50 PT on VECO
VECO closed Monday at $45.14
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in