UPDATE: Stifel Nicolaus Lowers PT to Newport Corporation; NT Softness in Research/Defense

Stifel Nicolaus says it reduces its price target from $2 to $21 on Buy-rated Newport Corporation

. Stifel Nicolaus comments, "Newport reported 1Q12 revenue and pro forma EPS below our and consensus estimates driven by challenging demand trends in both scientific research and defense end markets, although larger than anticipated cost synergies benefitted margins relative to our expectations. Guidance points to generally flat revenue q/q on continued end market challenges. Management believes that softness in research and defense end markets is partially due to budget timing, with momentum expected to improve in 2H12. On a previously disclosed material life and health science order, overall orders reached an all-time record, resulting in book-to-bill of 1.18x. Although near-term results, guidance, and a lowered 2012 revenue outlook are likely to disappoint, we view guidance as achievable and find valuation attractive." NEWP closed at $17.29 on Wednesday.