In a report published Monday, Susquehanna International Group analyst Mehdi Hosseini downgraded the rating on Advanced Energy Industries AEIS from Positive to Neutral, and lowered the price target from $28.00 to $27.00.
In the report, Susquehanna International Group noted, “We now expect semi capex growth in CY14 to be limited to 8-10%, at best, and thus leading to lower Thin Film-related revenue growth at Advanced Energy. We are therefore reducing our CY14 EPS estimate from $2.50 to $2.40, and lowering the price target from $28 to $27. Advanced Energy has done a great job of resizing the company, particularly in the Solar Inverter segment. However, with Semi Cap still accounting for 60% of Thin Film revenue and thus 30% of total revenue, while offering a better than average margin profile, we don't expect Advanced Energy to be immune from slower semi cap growth in CY14. We wait for a better entry point in the teens to become constructive again.”
Advanced Energy Industries closed on Friday at $24.46.
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