Oppenheimer analysts provided their views on Veeco Instruments Inc. (NASDAQ:VECO) following the company’s investor meetings hosted on Friday with CEO Bill Miller, CFO John Kiernan, and IR Anthony Bencivenga.

According to the analysts, demand remains strong with book-to-bill over 1.13 and lead times steady at 6-9 months. The company ended Q4 with a $440 million backlog. Mix favors semi/compound semi at 45%/20% of total backlog, respectively.

The analysts believe the company is positioned to capture share in an evolving landscape as IDMs/ foundries increase spending to advance processes and expand capacity. Top foundry TSMC sees 2022 CAPEX at $40-44 billion with 10% allocated for advanced packaging and mask. In the analysts’ view, this bodes well for Veeco AP and EUV tools. The company recently announced orders for AP and IBD with a new EUV Mask entrant. The analysts mentioned they like the company’s broad and accelerating growth outlook led by LSA, EUV Mask, and AP lithography tools.