UPDATE: D.A. Davidson Lowers PT on Ultratech Following 2Q Results
In a report published Friday, D.A. Davidson analyst Thomas Diffely reiterated an Underperform rating on Ultratech (NASDAQ: UTEK), but lowered the price target from $33.00 to $27.00.
In the report, D.A. Davidson noted, “UTEK reported revenue of $43 million and EPS of $0.03, below the Street mean of $45 million and $0.04, respectively. Systems revenue declined 38% sequentially, largely driven by lower sales of advanced packaging (AP) tools. UTEK's 3Q outlook calls for revenue of ~$43 million and EPS of breakeven, below the Street expectation of $48 million and $0.14. Similarly, the company expects 4Q revenue and earnings to be flat sequentially. Order pushouts and lack of exposure to ramping memory customers is driving the weak near-term outlook. UTEK's AP customers remain in a digestion period following two strong years of capacity additions. Its largest AP customer, Intel (INTC* - $23.26), commented last night on continued weakness across the PC market that is expected to extend through year end. We believe this will limit meaningful AP capacity additions for several quarters.”
Ultratech closed on Thursday at $32.45.
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