S&P Capital IQ Reiterates its BUY Rating on Novellus Systems, Target Price Reduced

October 28 00:00 2011

NEW YORK, October 28 (RainbowNewsLine.com) – Analyst Angelo Zino of S&P Capital IQ reiterates his BUY rating on the shares of Novellus Systems (NASDAQ: NVLS), while reducing his estimates for the company. The 12-month target price has been reduced from $39 to $38.

Analyst Angelo Zino, in a research note published yesterday, mentions that the company reported Q3 operating EPS ahead of the estimates, despite the a QoQ decline in sales that is below expectation. Novellus Systems’ margins contracted but were better than anticipated due to cost control measures, the analyst says. The analyst believes orders will gradually improve going forward, driven by technology buys from leading edge chipmakers. The operating EPS estimates for 2011 and 2012 have been reduced from $3.19 to $3.07 and from $3.3 to $2.84 respectively.