HOCPY - The Gap Between Veeco's Improving Outlook And Market Perception Is Too Wide
- Veeco delivered in-line revenue for the third quarter, but with significantly better margins, and management's outlook/guidance for the fourth quarter and 2021 were positive.
- With the best quarterly margin in five years, the margin/profit improvement story at Veeco (on lower revenue) hasn't gotten enough credit.
- A history of share losses in multiple markets is a legitimate source of concern, but Veeco has re-positioned and re-engineered its core technologies to address multiple $100M+ markets.
- Veeco should trade closer to $15 today, with upside toward $20 if and when there's better execution on opportunities in LSA/AP litho and more clarity on MOCVD growth opportunities.
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The Gap Between Veeco's Improving Outlook And Market Perception Is Too Wide