Veeco downgraded to Market Perform at Northland on valuation

As previously reported, Northland downgraded Veeco (VECO) to Market Perform from Outperform with an unchanged price target of $30, citing valuation. Veeco is merging with Axcelis (ACLS), which Northland calls “a one-product company is over exposed to mature products, power semiconductor, and DRAM customers.” While acknowledging Veeco estimates will likely have “an upward bias,” the firm has lower confidence in Axcelis’ positive earnings revisions due to greater than 50% exposure to Chinese customers, the analyst added.