UPDATE: S&P Capital IQ Downgrades Veeco Instruments on Lowered 2014 Operating EPS
In a report published Thursday, S&P Capital IQ analyst A. Zino downgraded the rating on Veeco Instruments (NASDAQ: VECO) from Buy to Hold.
In the report, S&P Capital IQ noted, “We cut our '14 operating EPS estimate by $0.26 to $0.09 loss, but raise '15's by $0.07 to $1.29 EPS. We up our 12-month target price by $8 to $42, on a price-to-sales ratio above peers, given our view of growth prospects and net cash per share of over $12. VECO posted a Q4 loss per share of $0.42 vs. $0.09, wider than Capital IQ consensus. Sales fell 31% and margins narrowed, on lower volume, pricing pressure, and higher operating expenses. We are encouraged by improving customer utilization rates and anticipate an order recovery in '14, albeit from depressed levels.”
Veeco Instruments closed on Wednesday at $40.55.
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