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 (NASDAQ:VECO) have jumped today by as much as 15% following an analyst upgrade.
So what: Canaccord Genuity boosted its rating on the LED specialist two notches, all the way from "sell" to "buy," while nearly doubling its price target from $25 to $48. That's a big change in tune that's sent shares to a fresh 52-week high in the process. The change follows a supply chain tour in Asia that Canaccord Genuity conducted.
Now what: The analysts believe that the equipment market has bottomed out and that Veeco sports an attractive valuation poised for a rebound due to its leveraged model. A new equipment cycle may be about to begin as increased demand for LED lighting has helped offset the saturation of TV backlighting. There's still significant capacity that needs to be worked through, but Canaccord believes that most of this capacity is not operational and that Veeco is in store for some upside.
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