Orbotech (NASDAQ:ORBK) Appears Fully Priced Says Brigantine

Even though Orbotech Ltd. (NASDAQ:ORBK) is positioned strongly in their sector, ongoing weakness has positives already priced into the share price says Brigantine.

Brigantine noted, "After a great capex run in 2010, we saw a LCD equipment digestion period occur towards the end of the year, evident by bookings declines from equipment companies Ulvac, Tokyo Electron and Applied Materials (Nasdaq:AMAT)(Hold). Looking to 2011, we believe that China will be the main focus of order activity from domestic and non domestic manufacturers. As a leading yield management company, we believe Orbotech is well positioned to benefit from these fab projects. Based on its dominant market positioning, growing PCB (printed circuit board) revenues from direct imaging (DI) systems and new solar revenue opportunity, Orbotech’s fundamentals are strong, in our opinion. At the same time, we believe that most of China’s LCD momentum has been priced into shares.

"We are maintaining our 2010 estimates of $526.3M in revenues and EPS of $1.03. Reflecting Orbotech’s preliminary guidance and lower estimated amortization, we are raising our 2011 estimates to $560.4M in revenues and EPS of $1.29, from $498.5M and $0.79, respectively."

Brigantine Advisors maintains a "Hold" rating on Orbotech Ltd., which closed Thursday at $15.00, gaining $0.75, or 5.26 percent.