The stock is up a buck at $36.11.
From American Banking & Market News:
Citigroup, Inc (NYSE: C) analysts reiterated a “buy” rating on shares of Veeco Instruments Inc (Nasdaq: VECO) and set a price target of $52.00.
The analysts wrote, “We have a new bottom-up model to assess MOCVD tool requirements based on LED demand. While we think the TV story has largely played out at this point creating risk for some order digestion (not CQ3, more CQ4/CQ1), this model suggests any order decline should be relatively mild and short-lived. We see LED demand fundamentally supporting industry MOCVD tool shipments of 800-900/yr through 2013 before reverting back to a 300-400 tool/yr run rate thereafter. If VECO is able to hold share at current run-rates (likely, in our view), this would imply the ~$4.00-4.50/yr EPS that many worry is peak is actually “normalized” EPS from 2010-2013. Using a low to mid teens EPS multiple (certainly reasonable given multiples in other peer groups like semis), this implies risk/reward is still favorable, especially if the stock were to again pull back to the low $30’s.”
Shares of VECO traded down 8.56% on Tuesday hitting $35.36 during mid-day trading.