Kulicke & Soffa price target lowered to $55 from $60 at DA Davidson

DA Davidson analyst Thomas Diffely lowered the firm’s price target on Kulicke & Soffa to $55 from $60 but keeps a Buy rating on the shares. The company’s disappointing guidance is the headline, but the underlying dynamics are not nearly as negative, as after a couple of years of capacity digestion, the all important industry utilization rates are finally back above 80%, the analyst tells investors in a research note. The firm adds however that the macro uncertainty has essentially frozen customer expansion plans, particularly those in SE Asia serving the auto/industrial markets.