Jefferies Reiterates Buy on Varian Medical Systems (VAR) Following Analyst Day

November 30, 2016 8:41 AM EST
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Price: $89.79 +0.35%

Rating Summary:
    12 Buy, 8 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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Jefferies reiterated a Buy rating and $102.00 price target on Varian Medical Systems (NYSE: VAR) following the company's analyst day. Varian CEO Dow Wilson provided an update on the timing of the spin which suggested the potential for a delay into early '17 from the original target of a 12/31 separation. Management reiterated its goal of achieving 5% org. growth vs. a blended 4% for its end markets.

Analyst Anthony Petrone commented, "Key takeaways were: 1) spin date could get pushed back by a month due to regulatory timing; 2) plenty of room to grow within $4bn current TAM on OEM wallet share gain alone; 3) CMS reimbursement cut to film imaging in 2018 a catalyst to accelerate analog-to-digital conversion; 4) strategy still calls for M&A with a variety of options being explored; 5) outlook for 300bps+ of margin expansion and FCF profile improvement reiterated."

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 $91.36 yesterday.

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