Piper Jaffray Overweight On Veeco Instruments (VECO)

Piper Jaffray has an Overweight rating and a $62 price target on shares of Veeco Instruments VECO. In a note to clients, Piper Jaffray writes, "While 1Q11 revenue guidance is disappointing, we believe investors should focus on gross margin guidance up as much as 100 bps despite a 12-28% decline in revenue q/q. Management commentary about margin sustainability through 2011 versus consensus of 48% for the year likely drives $0.55 in upside. Given full year guidance is in-line with our street high estimates, likely share gains from the new MaxBright tool, and continued bookings strength, we raise our 2011/2012 EPS to $5.80/$6.00 from $5.25/$5.60 previously. Veeco currently trades at 7.5x forward earnings, a 42% discount to LED peers. We would be buyers on any near term volatility." Shares of VECO gained 57 cents yesterday to close at $45.14, a gain of 1.28%.