Nassarius Capital
Long/short equity

Orbotech: Relishing In China's Growing Appetite For Consumer Electronics

(Editor's note: Orbotech Ltd. is scheduled to release earnings results on Thursday October 31)

We believe Orbotech is best-positioned within a small, but rapidly evolving industry that is being overlooked by the market. We expect strong industry tailwinds and a recent restructuring to drive top-line growth and margin expansion to above normal levels, resulting in ~40% upside and a 2014E fair value target north of $16.

COMPANY BACKGROUND

Orbotech Ltd. (NASDAQ:ORBK), located in Israel, is the market share leader in the production of inspection, testing, repair, and monitoring equipment for the printed circuit board (PCB) and flat panel display (FPD) manufacturing industries. Printed circuit boards are the backbone of electronic devices and flat screens are increasingly installed alongside,...

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