Sterne Agee Maintains Neutral, $24 Target on Veeco Instruments

Sterne Agee reiterates its Neutral rating and $24 target price on Veeco Instruments

as it raises estimates slightly, but keeps them still well below consensus. Sterne Agee notes, "Although total bookings increased 8% Q/Q, given the limited visibility for MOCVD demand and the depressed levels of capacity utilization, we believe there could be further downside to bookings. Though valuation is certainly attractive, we are skeptical of management's view that general lighting and a recovery in backlighting will drive a steep ramp in tool orders. With LED TV penetration at 46% in 2011 going to 68% in 2012, we do not view increasing penetration as a significant driver for incremental MOCVD tool demand." VECO closed at $27.14 a share on Monday.