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.

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.