DA Davidson Maintains Buy on Kulicke and Soffa Industries

DA Davidson reiterates its Buy rating on Culicke and Soffa Industries

as it believes the company's December quarter marked the bottom, and that the next quarter should marks the cyclical trough. DA Davidson notes, "Our F2Q estimates call for sales of $170 million and EPS of $0.33. These estimates significantly exceed consensus expectations of $137 million and $0.15, respectively. While our view calls for a nice pick-up in OSAT driven copper business (starting after the Chinese New Year shutdowns in late January), overall industry utilization rates are expected to stay seasonally weak in the March quarter. Thus, we believe the ramp starts in F2Q and builds strength meaningfully in F3Q." KLIC closed at $11.21 a share yesterday.