UPDATE: Canaccord Genuity Upgrades Veeco Instruments to Buy, Raises PT on Cycle Rebound

In a report published Monday, Canaccord Genuity analyst Jonathan Dorsheimer upgraded the rating on Veeco Instruments VECO from Sell to Buy, and raised the price target from $25.00 to $48.00. In the report, Dorsheimer noted, “We are upgrading the LED group following our recent supply chain tour of Asia. Specifically for VECO, we believe that the equipment market has finally bottomed and with attractive valuation and strong leverage in the model the only thing holding shares back is the audit overhang...We believe that increased demand from lighting is beginning to offset the saturation of TV backlighting and that we are on the verge of another equipment cycle. While on paper the industry still has significant capacity to digest, we have confirmed that approximately 80% of China's ‘capacity' is not operational or salvageable due to limited operational uptime combined with low yields where utilized. As such, we believe that the effective worldwide supply-demand environment is tightening.” Veeco Instruments closed on Friday at $34.96.