Yet another great call from Fitzgerald of BofA....
Varian Semi shares jump on stronger profit
Friday January 30, 11:54 am ET
SAN FRANCISCO, Jan 30 (Reuters) - Varian Semiconductor Equipment Associates Inc. (NasdaqNM:VSEA - News) shares jumped 14 percent on Friday after posting earnings that one analyst said were some of the best of any small-capitalization company in the chip-making tools industry.
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In the Gloucester, Massachusetts-based company's fiscal first quarter, net profit rose to $4.8 million, or 13 cents a share, from $2.8 million, or 8 cents a share, a year earlier. Revenue rose to $101.8 million from $83.7 million.
Mark FitzGerald, an analyst with Banc of America Securities (News - Websites) , wrote in a note to clients that the company "put up some great numbers." He raised his price target on the stock to $36 from $29. That price target, however, is below the stock's current value, and FitzGerald maintained his "sell" rating on the shares.
"Future growth is dependent on their new high current single wafer implanter," he wrote. "Management talks the product up but won't back it up with details ... The risk of paying up for VSEA is high without some confidence on the penetration of the new product."
Varian Semiconductor stock was up $6.17 to $49.94 in midday trade on Nasdaq, where it was among the top percentage gainers. |
