Piper Jaffray cautious on Veeco following LED checks

Piper Jaffray says its LED industry channel checks indicate little visibility into second half of 2013 MOCVD demand and that 2014 unit demand is likely to be similar to 2013, despite optimism that LED lighting demand will drive a turnaround in MOCVD orders. Piper also sees significant pricing pressure due to overcapacity. The firm said its 2014 earnings estimate for Veeco is well below consensus at $1.15. Piper keeps a Neutral rating on Veeco shares while upping its price target to $28 from $27.