J.P. Morgan Initiates Coverage on Photronics

J.P. Morgan Chase & Co. is out with a research report on Photronics

and is initiating coverage with a Neutral rating and a $6.50 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "We are initiating coverage of PLAB with a Neutral rating and a December 2012 price target of $6.50. Photronics is a leading supplier of photomasks to semi and flat panel display (FPD) manufacturers. Although we believe the company is better positioned than it has been in years, we don't believe it is immune to weakness in its end markets or aggressive pricing by large competitors. With all things considered, we estimate Photronics C12 revenue to be down modestly vs. C11. However, we believe the stock is largely washed out as are other SemiCap companies in our coverage universe; as a result, we view PLAB as having little downside risk with potential for upside in C2H12." Shares of PLAB closed at $5.96 yesterday.