UPDATE: Canaccord Genuity Upgrades Veeco Instruments Following LED Supply Chain Meetings

In a report published Tuesday, Canaccord Genuity analyst Jonathan Dorsheimer upgraded the rating on

from Sell to Hold, and raised the price target from $22.00 to $40.00. In the report, Canaccord Genuity noted, “After a week of meetings throughout Asia in the LED supply chain, we come away with increased confidence that general lighting is accelerating and the LED industry is tightening. As a result of the tightening, we believe that order rates for MOCVD equipment will finally begin to accelerate after a prolonged downturn, which we originally predicted back in 2009. "We do not believe that the Third Cycle peak will be as high as the Second Cycle; however, Veeco's continued share gains, driven by a compelling COO and new products, have allayed our concerns about Veeco's economics over the coming cycle. While we are confident that there is a large equipment cycle coming, we do not believe that orders have yet begun. We believe that Veeco's upcoming Q4 print could be volatile – with positive commentary offset by a lack of hard results. We would need to see both increased order activity and signs pricing will recover from this unnatural environment to become more constructive on the name.” Veeco Instruments closed on Friday at $39.83.