China Concerns To Plague LED Stocks, Citi Says (AIXG, VECO, LEDS, EFOI, RBCN, CREE, NEXS, PHG)
Shares of Aixtron SE (AIXG), the maker of equipment for the semiconductor and LED industries, are plunging 7% after Citigroup said LED fundamentals in China are weakening due to funding issues. The bank said Aixtron will probably miss second-quarter estimates and reiterated a “sell” rating on the stock,which has slid 23% in the past month.
The news isn’t sitting well with investors as the LED Stocks Index is down 2.7%. Unfortunately, the bad news for LED stocks doesn’t end with Aixtron. Shares of Veeco Instruments (VECO) are down 3% after Citi trimmed its earnings estimates on that stock as well, also citing weakness in the Chinese market. Citi pared its price target on Veeco to $47 from $49, but sees downside risk to the mid-30s. Veeco shares have tumbled 18% in the past month.
The weakness among LED stocks is palpable today as SemiLEDs (LEDS) is also off 7%. Energy Focus (EFOI) is faltering by 5% and Rubicon Technology (RBCN) is down 2%. Cree (CREE) is fractionally higher while Nexxus Lighting (NEXS) and Koninklijke Philips Electronics NV (PHG) are acting as Index bright spots with gains of 2% each.
Investors can track the LED Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
LED Stocks Surging (CREE, AIXG, VECO)– China Will Begin Banning Incandescent Bulbs (Green Stocks Central, 11/4/11)
Aixtron (AIXG) Gaps Up 10% On Indication It’s Received Large Order (Digitimes) (Green Stocks Central, 12/23/10)
Here’s Why Shares of Veeco Instruments are Down 16% (Wall St. Cheat Sheet, 12/14/10)
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