UPDATE: Credit Suisse Upgrades Cymer to Outperform; Attractive Risk/Reward

Credit Suisse raises its rating on Cymer

from Neutral to Outperform and raises its price target from $54 to $62. Credit Suisse says, "Every once in a while there comes a point in a company's story that one has to really make up their mind - whether to agree with management and double down - or disagree and move on. To us, CYMI reached that point on 23rd April with its guidance for a sharp ~35-40% q/q increase in RD spending that nearly zeroes out ongoing earnings. We are doubling down - upgrading the stock to Outperform (from Neutral) with a $62 target price (from $54) - at the $45 level stock was indicating in afterhours, we think it embeds a ZERO probability that EUV will work (see charts). On the other hand, if EUV works, CYMI has the potential to be > $150 stock in the next 3 years." CYMI closed at $48.50 on Monday.