RESEARCH ALERT-Orbotech 1998 EPS raised
JERUSALEM, May 10 (Reuters) - Lehman Brothers said it raised its estimated earnings per share (EPS) for Israel's
Orbotech Ltd (ORBKF - news) after the company exceeded forecaste first-quarter EPS, but it maintained its ''1-Buy''
rating.
''Showing no sign of weakness in the Far East and Japan, Orbotech handily beat our first-quarter estimate, as EPS sprinted
41 percent to $0.69 -- $0.06 above our estimate,'' analyst Ted Kundtz said in a report.
He said he now estimated EPS would reach $2.83 in 1998, up from an earlier estimate of $2.72, and $3.20 in 1999, up
from an earlier $3.15. He said these forecasts could be conservative especially with the rollout of new products.
Kundtz set a 12-month price target of $48-$50.
Orbotech closed at $37.0625 in Nasdaq trading on Friday.
Lehman said it anticipated continued strong sales growth in the second quarter, especially in the Far East and Japan, for the
company' s printed circuit board (PCB) inspection systems.
Kundtz said Orbotech's price-to-earnings (P/E) ratio of 13.8 times estimated 1998 EPS and 12.2 times 1999 EPS reflected
''compelling value,'' despite recent gains in the share price.
He said the company remained the dominant force in the PCB inspection-system market and was off to an good start with
several new products.
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