Zacks senior integrated chip market analyst Ken Nagy, CFA reiterates his Sell recommendation on shares of Photronics, Inc. (PLAB).  We found out the details behind this decision:

'Photronics is an OEM [original equipment manufacturer] of photomasks used by the semiconductor manufacturing industry in the fabrication of IC [integrated chip] devices and LCD displays. In the July quarter the top-line results were weak as a result of weakness in flat panel display. Since foundries build-in their own photomasks in the larger geometries, the more advanced nodes are that much more important.

'The company has strong technical development capabilities, and is experiencing growth in its 130nm and 90nm product lines. In the near term, this growth will not outshine a maturing legacy product and soft markets. Consequently, we rate shares of PLAB a Sell.

'In 2007, we expect utilization to be down slightly. Near-term growth prospects could be limited, as management guided quite conservatively and the company transitions into new plants. With the share price dropping approximately 35% off the 52-week high, the successful completion of an equity offering and the continued pay-down of debt, we prefer to be on the sideline until the Flat Panel Display markets pick up.'