UPDATE: Lazard Capital Downgrades Veeco Instruments to Neutral

Lazard Capital is out with its report today on Veeco Instruments (NASDAQ: VECO), downgrading VECO from Buy to Neutral.

In its report, Lazard Capital writes, "We are downgrading VECO to NEUTRAL from BUY. While we like that the company has a strong balance sheet with $15 cash/share and is gaining share on the heels of its MaxBright tool, we recommend that investors take a more cautious approach due to: 1) a slowdown in the China market, which represents a key factor in driving growth, due to tightening credit and uncertainties over the subsidy policy; 2) uncertainty on the timing of the ramp in general lighting; and 3) weak overall demand in the LED market leading to significant pricing pressure."

At the time of posting, shares of VECO were trading at $30.58, down 3.88% from Thursday's close.