UPDATE: Oppenheimer Downgrades Veeco Instruments on Near-Term Uncertainty
In a report published Tuesday, Oppenheimer analyst Andrew Uerkwitz downgraded the rating on Veeco Instruments (NASDAQ: VECO) from Outperform to Perform, and removed the $42.00 price target.
In the report, Oppenheimer noted, “We are downgrading Veeco Instruments to Perform from Outperform and removing our $42 PT on near-term uncertainty. While we see VECO as better positioned to capture share over the next 12-18 months, we see two primary risks to the stock. First is potential fallout from the revenue recognition issue the company has been battling with for nearly a year. Second, we expect an earnings correction when it reports. While both were previously known to us, we believed a resolution to the accounting issue would have been resolved by now, but after updating our financial statements, the earnings correction is more severe than we previously thought. Moreover, the risk/reward is more balanced at current levels.”
Veeco Instruments closed on Monday at $38.15.
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