FORT LAUDERDALE, Fla., June 22 /PRNewswire/ -- J. Andrew Braswell,
equity analyst with Newbridge Securities Corporation ("Newbridge"), has
initiated coverage on Kopin Corp. (Nasdaq: KOPN), with a "Buy" rating and a
12 month price target of $6.50.
Kopin develops and manufactures innovative semiconductor products using
its proprietary process of "wafer engineering," which allows the splicing
or layering of dissimilar semiconductor materials, thus combining the
properties of each and providing optimized performance for specific
applications. Today, the company uses the wafer engineering process in its
two major product lines, heterojunction bipolar transistor (HBT) wafers and
microdisplays. Kopin's HBT wafers feature vertically arranged transistors
formed of as many as 14 layers of exotic semiconductor materials such as
gallium arsenide and indium phosphide, and are fashioned into power
amplifier chips used in wireless handsets and networking components. The
AMLCD microdisplay business is currently in transition, as the company is
deemphasizing sales into the camcorder market in favor of military
applications and emerging consumer electronics devices like video eyewear.
"Shares of Kopin are down more than 27% year-to-date as the market
resets expectations based on disappointing 2006 guidance," stated Mr.
Braswell. "The company is certainly facing some risks, including declining
ASPs in both product lines and a microdisplay business that is
transitioning to new customers and seeing the emergence of competing
technologies. However, we believe the current share price overstates these
risks and undervalues Kopin's technology and the earnings potential of the
business. The stock is now trading at 2.9x sales and 1.8x book value, with
44% of the market cap in cash. We believe shares may rise on improved
results in the second half of the year, as military microdisplay contracts
ramp and HBT wafer sales remain strong. Our $6.50 price target is based on
a 4.0x price/revenue multiple to our 2007 revenue estimate."
About Newbridge Securities Corporation
Newbridge is a full-service securities brokerage firm and investment
bank (Member NASD & SIPC, CRD # 104065) and a subsidiary of Newbridge
Financial, Inc., an integrated financial services company. The Newbridge
Research department specializes in the analysis and coverage of companies
that have a strategic focus on nanotechnology. Newbridge Research has
established the Newbridge Nanotechnology Index (NNIX) which currently
consists of 24 companies, and is reconstituted and rebalanced each fiscal
quarter. Newbridge Research also publishes a quarterly report entitled
"Inside Nanotechnology," which reviews the growing presence and impact of
nanotechnology, as well as certain of the companies listed on the NNIX.
More information is available at our websites
http://www.newbridgereports.com and http://www.newbridgesecurities.com .
For important disclosures and information regarding the Firm's rating
system, valuation methods and other matters of interest, please visit:
http://www.newbridgesecurities.com/research_rpt_discl.html . Additional
information is available upon request.
SOURCE Newbridge Securities Corporation