Deutsche Bank analyst Vishal Shah lowered his estimates for Veeco Instruments after his channel checks pointed to increasing competition in China. AMEC released a competitive second generation four-chamber tool with a larger reactor size and is gaining traction with several Chinese customers, while TOPEC is also starting to gain traction, Shah tells investors in a research note. The analyst believes, however, that the near term outlook for MOCVD fundamentals remains strong. He cut his price target for Veeco shares to $21 and keeps a Hold rating on the shares.