Novellus (NASDAQ:NVLS) Spending in 2011 Should Increase

Novellus (NASDAQ:NVLS) is expected by Needham & Company to increase their spending in 2011, generating a positive short-term outlook from Needham on them.

Needham said, "We maintain our Buy on NVLS after the company tightened 4Q10 bookings, shipments and EPS guidance to the higher-end on its mid-quarter business update call. Management remains optimistic on the long-term growth drivers for the industry and painted a more positive picture on 1H11 given the stabilization in end market demand post October. The updated guidance gives us more confidence on our call that semi equipment spending will grow in 2011...We raise our 2010 and 2011 revenue/non-GAAP EPS estimates to $1,345B/$2.95 and $1,500/$3.47, respectively, based on improved order visibility and a higher gross margin assumption."

Needham & Company maintains a "Buy" rating on Novellus (NASDAQ:NVLS), which is trading at $32.42, up $0.65, or 2.05 percent, as of 2:51 PM EST. Needham raised their price target on them from $31 to $35.