On Wednesday, Veeco (NASDAQ:) Instruments Inc. (NASDAQ:VECO) saw its price target increased by Needham from $43.00 to $46.00, with a continued Buy rating on the stock. The adjustment follows Veeco’s report of a quarter that exceeded expectations and provided guidance above consensus estimates for the next quarter.
The company, known for its semiconductor equipment, has demonstrated consistent performance, prompting the firm to raise the price target. Veeco’s first quarter of 2024 results and the guidance for the second quarter both surpassed Wall Street’s predictions. This positive outcome led to heightened confidence in the potential expansion of applications for Veeco’s anneal products.
The focus of investor attention was on the use cases of Veeco’s anneal products in advanced logic and high-bandwidth memory sectors. Management at Veeco expressed belief in the adoption of their nanosecond anneal technology by top-tier logic customers for 2nm processes, which would complement the existing laser anneal positions.
Moreover, the laser anneal solutions are being integrated not just for buffer die but also for peripheral logic in DRAM dies within high-bandwidth memory stacks. This dual application across different memory components indicates a broader market for Veeco’s technologies.
Veeco’s management also confirmed their outlook for 2024, reinforcing their positive stance on the company’s future performance. The new stock price target is based on 22 times the calendar year 2025 non-GAAP earnings per share, reflecting Veeco’s solid execution and the possibility of a re-rating as the stock is considered undervalued compared to its semiconductor capital equipment peers.
The firm reiterated its Buy recommendation on Veeco’s shares, emphasizing the company’s successful track record and promising prospects.
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InvestingPro Insights
Following the upbeat assessment from Needham, real-time data and InvestingPro Tips offer additional insights into Veeco Instruments Inc. (NASDAQ:VECO). The company’s market capitalization stands robust at $2.11 billion, reflecting investor confidence.
Veeco’s recent performance shows a significant return over the last year with a 94.75% increase, and the stock is currently trading near its 52-week high, at 96.33% of this threshold. This is indicative of strong market momentum and investor optimism surrounding the company’s growth…
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