FEI downgraded to "neutral"

04/11/05 - D.A. Davidson & Co.

NEW YORK, April 11 (newratings.com) - Analyst Matthew Petkun of DA Davidson downgrades FEI Company (FEIC) from "buy" to "neutral," while reducing his estimates for the company. The 12-18 month target price has been reduced from $30 to $26.

In a research note published on April 8, the analyst mentions that the company and its peers are expected to witness lower-than-expected semiconductor sales in 1H05 due to the deferral of additional R&D expenses until 2H. Seasonal sluggishness in 1H is likely to adversely affect FEI's core business serving segment and institute customers for nanotech R&D, the analyst says. DA Davidson expresses its optimism, however, regarding the company's long-term growth prospects. The EPS estimate for 2005 has been reduced from $0.82 to $0.78.