Mattson shares up on big Samsung order

AP News
|
Posted: Dec 01, 2009 2:51 PM

Shares of Mattson Technology Inc. rose Tuesday after an analyst upgraded the stock based on improving market demand and a big order coming from Samsung Electronics Co. Ltd., a major customer.

Oppenheimer analyst Gary Hsueh upgraded Mattson to "outperform" from "perform" and raised his price target by a dollar to $4.

He said recent checks suggest that a $20 million to $25 million order from Samsung is coming for Mattson, a chip equipment maker based in Fremont, Calif., in the fourth quarter.

"We expect this single order to catapult Mattson to positive cash flow in the first quarter," the analyst said in a research note.

For fiscal 2010, Hsueh raised his loss estimate to 35 cents per share from 85 cents. He also sees potential orders coming from Hynix Semiconductor Inc. and Toshiba Corp., which could follow Samsung by one to two quarters.

Shares of Mattson were up 27 cents, or 11 percent, to $2.72 in afternoon trading.