Analyst Cuts Veeco On Share Price, Oversupply

NEW YORK (AP) — A D.A. Davidson & Co. analyst downgraded Veeco Instruments Inc. on Tuesday, citing fears of a supply glut in one of the company's key markets and a recent hike in share price.

Matthew Petkun lowered his rating on Veeco, a Plainview, N.Y.-based precision manufacturing products maker, to "neutral" from "buy."

He raised his price target to $25 from $22, saying the company should see strong demand in its LED light and data storage businesses.

But he added that recent moves to boost capacity for the backlighting display market "will ultimately result in a period of oversupply ... in 2010."

The company's stock has also more than tripled since the beginning of the year. Its shares slid 2 cents to $22.02 in late trading.