Friday, December 17, 2010

Orbotech Ltd. (NASDAQ:ORBK) Remains Strong in PCB and FPD

Orbotech Ltd. (NASDAQ:ORBK) looks like it may have a better year than recently expected, and their two major markets, - PCB and FPD - look strong heading into 2011.

Needham said, "We are increasingly optimistic about the upside potential to our estimates for ORBK following recent meetings with management and given positive commentary issued yesterday from one of its largest display customers. Conditions in ORBK's two main markets – PCB and FPD – remain strong, with 2011 shaping up to be a better year than we envisioned a month ago. We are raising our estimate for 2011, and believe there is further upside potential to estimates. ORBK shares, while up 18% over the last three months, remain a compelling value, in our view, trading at less than 10x our 2011 EPS estimate, adjusting for net cash, and 7x EV/EBITDA. ORBK is one of our top small-cap ideas for 2011."

Needham & Company maintains a "Buy" on Orbotech Ltd., which closed Thursday at $12.28, up $0.17, or 1.40 percent. Needham raised their price target on them from $15 to $17.

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