Buy Rating From Analyst Sends Newport Stock Soaring

Shares of Newport Corp. surged Friday, after First Union Securities initiated coverage of the company with a buy rating. Stock of the Irvine maker of equipment to build semiconductors and fiber-optic parts climbed 21.5%, or $12.25, to $69.25 in Nasdaq trading. The shares have more than quadrupled in price this year, although they’re trading far below the high of $192.06 late in September. First Union said in its note that it believes the optical components industry is in the beginning stages of a “long-term secular growth phase.” The company added that it sees Newport at the forefront of providing the industry with the test equipment to accelerate manufacturing times. First Union, based in Charlotte, N.C., set a 12-month price target of $85 for Newport and a 2001 revenue estimate of $354 million.