Pacific Crest analysts Daniel Baksht and Weston Twigg met with Veeco Instruments Inc. VECO’s President Bill Miller Phd. last week. Accompanied by the Doctor, the experts visited the company and left feeling optimistic about its long term outlook.
The site visit reinforced the analysts’ view that demand for Veeco's equipment, used to produce LED chips, will recuperate in 2017 on the back of:
- 1) The potential for new capacity increases – as the firm anticipates LED chip growth of 9 percent.
- 2) The sizable installed base of old MOCVD tools, which supports a replacement cycle
- 3) The company's leading market position – as indicated by the company’s low R&D spend devoted to its equipment program for LED lighting/display applications, and its focus on growth initiatives.
Related Link: Pacific Crest Favors Veeco Over Cree In LED Sector
Consequently, the firm reiterated an Overweight rating and $23 price target on shares of Veeco, assuring they continue to like the risk/reward profile and remain buyers of the stock.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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