Kaufman Cuts Price Target on Aixtron (AIXG), Remains Bullish Long-Term

Kaufman Bros. is maintaining its Buy rating on shares of Aixtron (NASDAQ: AIXG), but is cutting its price target from $37 to $22.

The firm is reducing its 2011 revenue forecast from €822 million to €650 million due to weakness in demand in the second half of 2011. Kaufman notes that recent order cancellations and the elimination of its LED business expansion plans will have a direct impact on the company's full year results.

The LED markets may currently be depressed, but Kaufman believes that it is only for the short-term as price cuts will drive demand growth moving forward.

An analyst at Kaufman comments, "While investors may question AIXG's outlook, we remain bullish on the longer term potential, and believe recent MOCVD weakness can also, in large part, be attributed to the end of phase one in the LED growth story."

The firm has lowered its 2011 and 2012 EPS estimates from €1.90 and €2.18 to €1.41 and €1.56. Kaufman is also slashing its 2011 and 2012 revenue estimates from €822.4 million and €929.6 million to €650 million and €726.4 million.

For more ratings news on Aixtron click here and for the rating history of Aixtron click here.

Shares of Aixtron closed at $16.26 yesterday.

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