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On Thursday, Benchmark analyst Mark Miller adjusted the price target for Veeco Instruments Inc. (NASDAQ:VECO), reducing it to $31 from the previous $38, while continuing to endorse the stock with a Buy rating. Currently trading at $24.42, the stock sits near its 52-week low of $23, having declined over 35% in the past six months. Veeco’s fourth-quarter results for 2024 were reported to be within the provided guidance, with earnings surpassing investor expectations by one cent. The company’s Semiconductor segment led with a 13% year-over-year growth. According to InvestingPro data, the company maintains a healthy financial profile with a "GOOD" overall score.
Miller highlighted that Veeco has forecasted lower results for the first quarter of 2025, anticipating similar sales in the second quarter. Despite this, the company is expected to see growth in 2025 across all segments, with the exception of Data Storage. For the full year, the new non-GAAP earnings projection is $1.52 per diluted share. With a current P/E ratio of 16.82x and revenue growth of 7.63%, InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report.
The revised price target of $31 is based on a forward price-to-earnings (P/E) ratio of 20. This recalibration comes as a result of the company’s guidance and current market conditions. Miller’s stance remains bullish on Veeco’s prospects, as reflected in the maintained Buy rating despite the lowered price target.
Veeco’s performance and projections indicate a mixed outlook for the near future, with certain segments poised for growth while others may not perform as strongly. Investors and market watchers will be keeping an eye on the company’s progress as it navigates through the challenges and opportunities of 2025.
In other recent news, Veeco Instruments has been the subject of several significant developments. Following the release of its fourth-quarter earnings for 2024, research firm Needham adjusted its price target for Veeco Instruments from $35.00 to $29.00, while maintaining a Buy rating. This adjustment came after Veeco’s guidance for the first quarter of 2025 fell short of consensus expectations. Needham also anticipates a slight overall business decline for Veeco in the coming year, with the Data Storage segment likely contributing to this decline.
Veeco Instruments has also revised its financial guidance for the fourth quarter and full year of 2024, with fourth-quarter revenue now expected to range from $175 to $185 million. The company’s GAAP diluted earnings per share for the fourth quarter are now estimated to be between $0.09 to $0.28. Veeco’s management has attributed these adjustments to the Silicon Carbide Epitaxy technology, acquired in 2023, not meeting market penetration expectations.
Citi analysts upgraded Veeco Instruments from Neutral to Buy, setting a price target of $33.00. The upgrade reflects Citi’s positive outlook on Veeco’s expanding Serviceable Available Market (SAM) and its gains in laser annealing and nanosecond annealing technologies. Despite a forecasted sharp decline in the data storage segment for 2025, analysts believe that the negative impact is largely accounted for in the current stock price.
In addition, Veeco Instruments has secured a new partnership with PlayNitride, a pioneer in MicroLED technology. PlayNitride has qualified Veeco’s Lumina® Metal Organic Chemical Vapor Deposition (MOCVD) system for the production of cutting-edge MicroLEDs and has placed an order for two systems, scheduled for delivery in 2025. The Lumina system is designed to offer superior performance and productivity, critical for advancing MicroLED technology and improving cost efficiency.
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