UPDATE: Stifel Nicolaus Reduces PT to $16 on Newport Corporation on Macro Pressure
Stifel Nicolaus reiterated its Buy rating on Newport Corporation (NASDAQ: NEWP) but lowered its price target from $18 to $16 as the company posted a lower guidance for the next quarter.
Stifel Nicolaus noted, "4Q12 guidance calls for revenue, pro forma operating margin, and pro forma net income to be flat on continued macro uncertainty in most end markets, with management noting the lack of a near-term catalyst and no expectation for a seasonal budget flush. Although lowering our revenue growth expectations on continued macro uncertainty, we believe investors will positively view results as Newport continues to deliver on the bottom line despite elusive revenue growth. We maintain our Buy rating on shares expecting eventual revenue improvement and channel synergies from acquisitions will result in meaningful operating leverage long term."
Newport Corporation closed at $10.82 on Wednesday.
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