LTX Credence shares soar after analyst upgrade

LTX Credence shares rise after Needham analyst upgrades stock to 'strong buy'

• On 1:50 pm EDT, Friday September 4, 2009

SAN FRANCISCO (AP) -- Shares of LTX Credence Corp. climbed Friday after a Needham Co. analyst upgraded the chip testing equipment maker to "strong buy," saying its fiscal fourth-quarter results were strong and it is poised to see revenue growth going into 2010.

Shares of Milpitas-based LTX Credence rose 26 cents, or 23.9 percent, to $1.35.

In a note to investors, Needham analyst Vernon Essi Jr. raised his rating from "hold," saying LTX Credence's July results were a bit above his expectations, and its fiscal first-quarter guidance is "materially" above what he had been expecting.

"Management was upbeat on its outlook and convinced that LTXC is past the bottom of the recent cycle," he said.

The analyst said he is now convinced that LTX Credence is "on an improving trendline in orders" that will likely lead to increased revenue moving into 2010.

He holds a $3 price target for the stock.