UPDATE: JP Morgan Downgrades Veeco Instruments to Neutral on LED Overcapacity

JP Morgan downgraded Veeco Instruments

from Overweight to Neutral and lowered the price target from $40.00 to $31.00. JP Morgan commented, "Asian LED producers over built capacity in 2011-2012, therefore VECO will see subdued orders for MOCVD reactors in 1H13, or until pull-through demand from general lighting applications re-kindles growth. The fourth quarter update, published 02/08, revealed a low level of bookings for MOCVD units that suggests that the firm's base-case unit expectations for 2013 is a stretch. We believe LED capital investments will return to solid growth in late 2013-2014, as General Lighting applications grow, and VECO should remain a leading supplier of LED process equipment. That said, visibility is currently limited." Veeco Instruments closed at $30.51 on Friday.