Pacific Crest Remains A Buyer Of Veeco Instruments Following Recent Site Visit

Pacific Crest analysts Daniel Baksht and Weston Twigg met with Veeco Instruments Inc. (NASDAQ: VECO)’s President Bill Miller last week. The analysts visited the company and left feeling optimistic about its long-term outlook.

The site visit reinforced the analysts' view that demand for Veeco's equipment, used to produce LED chips, will recuperate in 2017 on the back of:

• 1) The potential for new capacity increases, as the firm anticipates LED chip growth of 9 percent.
• 2) The sizable installed base of old MOCVD tools, which supports a replacement cycle
• 3) The company's leading market position – as indicated by the company’s low R&D spend devoted to its equipment program for LED lighting/display applications, and its focus on growth initiatives.

Related Link: Pacific Crest Favors Veeco Over Cree In LED Sector

The firm reiterated an Overweight rating and $23 price target on shares of Veeco, assuring they continue to like the risk/reward profile and remain buyers of the stock.