Analyst Matt Petkun says the buy rating is based on the company's ability to deliver significant upside. He says fourth-quarter results confirm this notion, smashing his and Street's 19 cents estimate. He notes order delays from dynamic random access memory customers in the third quarter came in at the beginning of the fourth quarter, leading to improved turns business in the fourth quarter. While he believes that activity from DRAM customers is approaching a peak in order growth, the company still has room to run in passive components and printed circuit-board markets.
Petkun raised the 97 cents fiscal 2005 (May) EPS estimate to $1.81; he sees $1.46 fiscal 2006 EPS. He upped the $30 target to $32.