UPDATE: D.A. Davidson Raises PT on FEI Company as Multi-Year Growth Story Continues to Unfold

In a report published Friday, D.A. Davidson analyst Thomas Diffely reiterated a Buy rating on FEI Company (NASDAQ: FEIC), and raised the price target from $84.00 to $100.00.In the report, D.A. Davidson noted, “We believe business trends in 3Q are tracking in line with expectations and continue to model a recovery in 4Q. Last month, FEI released three new transmission electron microscopes for applications across the Electronics, Materials Science and Life Sciences end markets. Based on FEI's technology leadership position combined with the current installed base, we expect orders for these tools across both existing and new customers to accelerate in 2H and should meaningfully contribute to 2014 revenue. Additionally, these tools should garner a more favorable margin profile. Thanks to the projected buildout of 14nm capacity by Intel (INTC* - $22.63), FEI's largest customer, combined with continued high levels of investment from the leading foundries and increased memory spending, we foresee a healthy environment for ramping semiconductor capital spending over the next several quarters, benefiting FEI's high margin Electronics segment.”FEI Company closed on Thursday at $84.70.