Market Overview

Summit Research Cuts Veeco Instruments Price Target As Company Continues To Underperform

Share:
Related VECO
20 Stocks That Rallied Three Days On No News
Expect Pressure On Semi Stocks Amid Terminated KLA-Tencor/Lam Deal

Veeco Instruments (NASDAQ: VECO) shares may be under pressure after Summit Research cut its price target from $30 to $25. Summit currently has a Sell rating on the stock.

With shares currently trading at 41 times forward earnings, Summit questions "whether even 16x would be appropriate as the company continues to be unprofitable and does not grow faster than S&P500."

Related Link: Are Fairchild, Power Integration Or Semtech To Be Acquired By Infineon?

Analyst Srini Sundararajan called due diligence for the acquisition of Synos ‘amateurish.’

"We continue to hold the opinion that Synos continues to be a purchase with no consequences – neither for VECO in terms of revenues, nor for the decision to buy it."

Regarding what appears to be a high level of utilization, this is compares to a low 2013 figure. Further, Summit argues these orders may be spares or upgrades, thus cannibalizing new tool purchases.

Shares of Veeco are unchanged in Wednesday’s premarket. The stock was last trading at $36.69.

Latest Ratings for VECO

DateFirmActionFromTo
Oct 2016UBSMaintainsBuy
Oct 2016KeyBancMaintainsOverweight
Aug 2016Deutsche BankUpgradesHoldBuy

View More Analyst Ratings for VECO
View the Latest Analyst Ratings

Posted-In: Srini Sundararajan Summit ResearchAnalyst Color Price Target Analyst Ratings

 

Related Articles (VECO)

View Comments and Join the Discussion!