UPDATE: Deutsche Bank Downgrades Veeco Instruments to Hold on Valuation

Deutsche Bank lowered its rating on Veeco Instruments

from Buy to Hold and reduced its price target from $40 to $38 as it believes near-term MOCVD bookings recovery is already priced into shares. Deutsche Bank noted, "While we continue to see modest improvement in MOCVD market in 2013, we believe shares are now likely discounting this recovery given the 83% YTD share price increase vs 12% of S&P. Coupled with the fact that most of the share price increase has been due to multiple expansion vs. positive estimate revisions and also considering the prospect that Q3/Q4 bookings recovery expected by MOCVD tool makers may get pushed out by 1-2 quarters, we believe the set-up is less favorable for a positive trade through the year-end." Veeco Instruments closed at $37.77 on Friday.