Veeco Instruments Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Veeco Instruments (NAS: VECO) climbed as high as 11% on Thursday after Deutsche Bank upgraded the LED equipment maker to buy from hold.
So what: Along with the upgrade, Deutsche Bank planted a $40 price target on the stock, representing more than 30% worth of upside to its Thursday closing price. In fact, the firm also upgraded Veeco's close rival Aixtron (NAS: AIXG) , citing early signs of a rebound in LED industry demand.
Now what: Don't let today's rally keep you from looking into Veeco. "We expect Q1'12 to be the trough bookings quarter for MOCVD equipment suppliers and expect positive share price momentum to continue as the order visibility improves," the Deutsche analyst said. With the stock still down more than 40% from its May highs and currently trading at a P/E of 11, buying into that optimism might pay off.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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