Needham Upgrades Ultratech Stepper to 'Buy'
Needham upgraded Ultratech Stepper (UTEK ) to buy from hold.
Analyst Cristina Osmena says she thinks the chip-equipment maker is poised to enjoy better fundamentals relative to the broader equipment industry in the near term, based on its high exposure to the industry-wide adoption of bump wafer processing.
Osmena notes Ultratech has lowered its breakeven level such that cash levels have remained stable for three quarters. She notes better than expected revenue, a smaller than expected loss, and a book-to-bill ratio above 1.1 in the first quarter, demonstrating industry-superior performance.
She narrowed the 27 cents 2003 loss estimate to a loss of 6 cents, and raised the 7 cents 2004 earnings per share estimate to 34 cents earnings per share. She initiatesd a $15 target.
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