UPDATE: D.A. Davidson Downgrades Ultratech to Underperform on Passing Price Target

In a report published Monday, D.A. Davidson analyst Thomas Diffely downgraded the rating on Ultratech (NASDAQ: UTEK) from Neutral to Underperform, but raised the price target from $31.00 to $33.00.

In the report, D.A. Davidson noted, “Based on our growing confidence that 2014 will be a strong double-digit growth year for semiconductor capital spending, combined with our ongoing belief that advanced packaging is in the early stages of a strong multi-year run, we are increasing our 2014 revenue projections for UTEK from 15% to 20% year-over-year (y/y) growth. Using the same valuation multiple (see below) we are raising our price target from $31 to $33. However, the recent 27% run in the stock has pushed the price well above our target level, thus we are downgrading the shares to UNDERPERFORM from Neutral.”

Ultratech closed on Friday at $26.25.