UPDATE: Bank of America Lowers Cymer's PO
According to a research report published this morning, Bank of America has lowered Cymer's (NASDAQ: CYMI) PO from $60 to $55.
In the report, Bank of America commented, "Cymer reported strong March Q results, but the June Q R&D guidance ($58m) was well above even our (higher than consensus) forecast of $42M. While the elevated levels of R&D spend to support next-generation EUV development is not new news, the new run-rate (in the intermediate term) was astonishing. In our view, the stock could remain under pressure near-term as earnings expectations get reset; but we have always argued that CYMI was a stock for the long term since the company should benefit once EUV goes mainstream and the earnings power expands. By our estimates, CYMI has the potential to earn well over $4.50 once the R&D normalizes and factoring in the assumption that the ASP (average selling price) for EUV comes down to ~$12M from $20M today."
Bank of America maintains its Buy rating on Cymer, which closed yesterday at $48.50.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.