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