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Jefferies Maintains a 'Buy' on Varian Medical (VAR); Still Struggling Domestically but VAR Remains A Safe Bet

January 26, 2012 12:15 PM EST
VAR Hot Sheet
Rating Summary:
    10 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Jefferies maintains a 'Buy' on Varian Medical (NYSE: VAR) price target raised from $72 to $77.

Analyst, Raj Denhoy, said, "A mixed FQ1 with revenues $8mn light but EPS ahead by $0.04 on a GM rebound, favorable product mix, and lower share count. F12 guidance largely intact, although sequential outlook a touch light on oncology order deal slippage. Shares could take a breather, but continued strong global demand, positive product cycle, and potential kicker from Siemens (NYSE: SI) exiting the market remain reasons to own VAR."

(Jefferies lowers FY12 EPS estimate from $3.98 to $3.95, but raises FY13 from $4.40 to $4.56)

For an analyst ratings summary and ratings history on Varian Medical click here. For more ratings news on Varian Medical click here.

Shares of Varian Medical closed at $69.24 yesterday, with a 52 week range of $48.72-$72.19.


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