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Roth Capital Ups II-VI to Buy

Analyst Dave Kang believes the demand picture remains "rosy"

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Roth Capital upgraded II-VI Incorporated (IIVI) to buy from hold, after the company staged a comeback.

Analyst Dave Kang says the company reported 11.3% year over year revenue rise and 25 cents earnings per share (EPS) vs. 21 cents consensus. He notes that blended gross margins increased to 40.9% from 38% in the recent quarter. He believes declining Selenium prices and reduced scrap costs contributed to improved gross margins. Meanwhile, he believes the demand picture remains rosy. He raises his 80 cents fiscal year 2006 (ending June) EPS estimate to 90 cents and his 98 cents fiscal year 2007 estimate to $1.03. He raises his $18.90 stock price target to $23.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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