Stifel Nicolaus downgrades Novellus Systems (NVLS) to Sell, Says Sale is Unlikely

Stifel Nicolaus downgrades Novellus Systems (Nasdaq: NVLS) from Hold to Sell, following recent speculation of a potential takeout of the company and the appreciation in its stock price.

Analyst Patrick J. Ho said, "while we have no additional insight, we do not see a potential takeout of the company occurring in the near term (although we do not want to discount the possibility of a LBO scenario, but also consider this somewhat unlikely near term). Ho also said, "even if a deal were to occur, we do not believe at current prices that there is any dramatic premium left in terms of valuation, particularly when compared to other recent semi cap deals."