Wednesday, January 12, 2011

Nova Measuring Instruments (NASDAQ:NVMI) Long-Term Growth Strategy Looks Sustainable

Nova Measuring Instruments (NASDAQ:NVMI) held an Analyst Event recently which Needham came away from believing the long-term growth strategy of the company looks good.

Needham said, "Yesterday (Monday), NVMI hosted a very well attended Analyst Event in NYC. With plans to expand metrology applications, we came away more confident in the company's long-term growth prospect given the company's track record. While increased R&D investments will limit earnings in 2011, we believe it is prudent for management to invest for longer-term sustainable growth. With share gains and a growing OCD sub-sector, we continue to believe NVMI will deliver aboveaverage growth regardless of the swings in the semi equipment cycle."

Needham & Company maintains a "Buy" rating on Nova Measuring, which closed Tuesday at $8.61, losing $0.12, or 1.37 percent. Needham has a price target of $11 on Nova.

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