In a report published Thursday, Bank of America analyst Krish Sankar reiterated a Neutral rating on Veeco Instruments (NASDAQ: VECO), but lowered the price target from $45.00 to $43.00.
In the report, Bank of America noted, “VECO reported 2Q14 rev/non-GAAP LPS of $95M/($0.16) compared to our estimate of $92M/($0.16) and Street at $93M($0.18). September rev/LPS guidance ($96M/($0.11) at midpoint) came in light versus the Street at $105M/($0.05), and well below our $125M/$0.06 forecast. A delay from 3Q14 to 4Q14 by a customer facing funding issues is the primary driver of the lower than expected outlook. Nevertheless, management expects sequential order improvement in both 3Q and 2H2014. We continue to believe that a strong and sustainable recovery in MOCVD demand is required to get more constructive on the stock, which we have yet to see. Our estimates come down, and we maintain our Neutral rating.”
Veeco Instruments closed on Wednesday at $35.77.
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