Needham Ups Brooks Automation to Buy from Hold
Needham upgraded the semiconductor supplier Brooks Automation (BRKS) to buy from hold, citing the company's better than expected revenues of $127.2 million.
Analyst Robert Maire says bookings grew 25% in the first quarter over the preceding quarter (excluding about two months of Helix), which is better than the company's expectation of 15% to 20% growth. Maire says the positive bookings environment seems to be continuing into the March quarter, and bookings are expected to increase sequentially in the $165 million to $175 million range. Maire thinks Brooks Automation has done a good job of integration of Helix, as the merger had been accretive from the start. He adds that the company has also started to achieve some of its targeted cost savings. He has a $22 price target on the stock.