UPDATE: D.A. Davidson Downgrades Cabot Microelectronics Corporation to Neutral, Raises PT

In a report published Monday, D.A. Davidson & Co. downgraded its rating on Cabot Microelectronics Corporation CCMP from Buy to Neutral, but raised its price target from $36.00 to $40.00. D.A. Davidson noted, “We continue to point out that business at CCMP tends to be more stable than most semiconductor equipment players. While business conditions should improve in the June and September quarters in line with the seasonal pattern in wafer starts, we believe this outcome is already reflected in our estimates. With improving market multiples, we are now applying an 18x multiple (previously 16x) to our CY13 EPS estimate of $2.22 to arrive at our $40 price target (previously $36), but with less than 15% upside, we are downgrading the shares from Buy to NEUTRAL. CCMP should remain a strong positive cash flow story through the cyclicality of the semiconductor cycle.” Cabot Microelectronics Corporation closed on Friday at $35.99.