Morgan Stanley Maintains Equal-Weight on Novellus Systems

Morgan Stanley is out with its report today on Novellus Systems

, maintaining Equal-weight. In a note to clients, Morgan Stanley writes, "NVLS reported rev/EPS and shipments results consistent with mid-quarter guidance; bookings of $312 mn (down 25%) were towards the lower end of guidance. Company guided 3Q bookings flat to down 20% QoQ, worse than consensus expectations due to foundry pushouts. The company was cautious on foundry spending and foundry utilization rates in 2H11. We lower our FY11 estimates modestly by 1% on higher interest expense in 2H11 and flat operating expense environment in the near term. Our FY12 estimates are roughly unchanged. We are leaving our fair value on the stock unchanged at $37 or ~11x our revised CY EPS of $3.45." At the time of posting, shares of NVLS were trading at $33.00, down 7.74% from Monday's close.