UPDATE: DA Davidson Reduces PT to $18 on Electro Scientific Industries on Lower Guidance

DA Davidson reiterated its Buy rating on Electro Scientific Industries

but lowered its price target from $22 to $18. DA Davidson noted, "ESI is guiding F3Q (December) revenue of ~$40 million and proforma EPS of $(0.05)-$0.00, below consensus expectations of $64 million and $0.12, respectively. The significant revenue dip is driven by continued weakness in the core markets combined with the lower levels of micromachining business. Unfortunately, ESI's business will likely remain extremely lumpy on a quarterly basis until either the customer base meaningfully expands beyond Apple (AAPL - $609.54) or the other businesses recover." Electro Scientific Industries closed at $12.44 on Thursday.