Market Overview

Electro Scientific Industries A 'Turnaround Story,' Says Stifel

Electro Scientific Industries A 'Turnaround Story,' Says Stifel

Electro Scientific Industries, Inc. (NASDAQ: ESIO) could stand to benefit from market trends that are boosting demand for flexible printed circuit boards as well as expansion into the growing HDI market, according to Stifel. 

The Analyst

Patrick Ho of Stifel initiated converage of ESI with a Buy rating and $36 price target.

The Thesis

Utilization of flexible circuits has picked up significantly in recent quarters and continues to be a strong driver of the company’s outperformance, Ho said in a Wednesday note. (See the analyst’s track record here.) 

"We believe ESI is a turnaround story that has favorable secular trends that can provide long-term growth" within a cyclical industry, Ho said. 

Continued growth in flexible circuit revenue could be unsustainable — and the company may be reaching an inflection point, the analyst said. 

“We want to clearly acknowledge that this business is very cyclical, and we are likely at a near-term peak in new system buys.”

Though the PCB sector could be nearing a peak, ESI is also making efforts to tap into other key markets with its core technology and new product introductions, including the high-density interconnect arena, which the company is targeting with its nViant product.

If ESI successfully expands into the HDI market, it could capture significant upside as the market ramps up growth, according to Stifel. 

“We believe the HDI market can grow 5-10 percent over the next several years, driven by growing usage in multiple markets like smartphones, aerospace and even medical equipment," the analyst said. 

Price Action

At the time of publication, ESI was trading up 6.66 percent at $20.99. 

Related Link:

30 Biggest Movers From Yesterday

Latest Ratings for ESIO

Oct 2018DA DavidsonDowngradesBuyNeutral
May 2018Stifel NicolausMaintainsBuyBuy
Mar 2018Stifel NicolausInitiates Coverage OnBuy

View More Analyst Ratings for ESIO
View the Latest Analyst Ratings


Related Articles (ESIO)

View Comments and Join the Discussion!

Posted-In: HDI Patrick Ho Printed Circuit Boards StifelAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

CAMTStifelInitiates Coverage On19.0
ELMDNorthland Capital MarketsInitiates Coverage On15.0
DKNGUBSInitiates Coverage On52.0
DIODTruist SecuritiesInitiates Coverage On84.0
TGTArgus ResearchUpgrades205.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at