UPDATE: Canaccord Genuity Resumes Coverage on Veeco Instruments Following Accounting Investigation

In a report published Tuesday, Canaccord Genuity analyst Jonathan Dorsheimer resumed coverage on Veeco Instruments VECO with a Sell rating and $22.00 price target. In the report, Canaccord Genuity noted, “We are resuming our rating on VECO as a SELL post the company's accounting investigation with a $22 PT. Our current rating is in-line with our bearish view that there is limited upside for both MOCVD equipment names. Now that the company is current we have seen the expected negative effect on Veeco's margins due to price competition and lack of a bubble-type spending environment which we do not believe will be repeated. We do not envision that pricing will materially recover over the next investment cycle, continuing to weigh on margins.” Veeco Instruments closed on Monday at $30.59.