UPDATE: DA Davidson Reduces PT to Cabot Microelectronics to $36 on Revised Multiples

DA Davidson reiterated its Buy rating on Cabot Microelectronics

but reduced its price target from $41 to $36. DA Davidson noted, "With exposure to relatively less volatile wafer starts (versus capital spending), we continue to point out that business at CCMP tends to be much more stable than most semiconductor equipment players. While business conditions remain challenging in the near term, CCMP remains a strong positive cash flow story through the cyclicality of the semiconductor cycle. Our $36 price target (previously $41) is based on a 16x multiple to our revised CY13 EPS estimate of $2.22 (previously $2.71)." Cabot Microelectronics closed at $29.99 on Thursday.