UPDATE: Wedbush Initiates Veeco Instruments at Neutral on Near-Term Caution

In a report published Friday, Wedbush analyst Craig Irwin initiated coverage on Veeco Instruments (NASDAQ: VECO) with a Neutral rating and $35.00 price target.

In the report, Wedbush noted, “While we expect Veeco to retain impressive earnings power in the next metal organic chemical vapor deposition (MOCVD) capacity addition cycle, we are cautious on any near-term rebound in order activity. Price-based competition with Aixtron likely pressures margins, and we believe consensus estimates need to come down. There are large orders on the horizon and favorable news coming from Veeco's customers, but we would wait for a more defined confirmation of a positive inflection to MOCVD equipment orders before becoming constructive on the stock.”

Veeco Instruments closed on Thursday at $35.68.