Veeco (VECO) will probably never be an easy stock to own, at least not relative to some of the larger, better-established semicon tool companies, but management has made some definite progress on margins and the data center business remains a strong near-term driver. Although lower sales to Chinese customers are going to create some headwinds, growth opportunities in areas like 5G RF filters and VCSELs remain valid.
Having underperformed many of its peers, Veeco is definitely more interesting to me now on a relative basis, and the standalone value is also more compelling. This company doesn't really have the sort of "moat" I'd really prefer at this point in my investing life-cycle, but with prospective returns back in the double-digits, I think this is a name to reconsider.
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Veeco Starting To Look A Little More Interesting On Data Center And Margin Strength
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