Goldman Sachs Downgrades Sigma-Aldrich (SIAL) to Sell

April 11, 2013 6:53 AM EDT Send to a Friend
Get Alerts SIAL Hot Sheet
Price: $103.90 +0.15%

Rating Summary:
    4 Buy, 10 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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Goldman Sachs downgraded Sigma-Aldrich (NASDAQ: SIAL) from Neutral to Sell with a price target of $66.00 (from $77.00) citing slower growth, limited P&L levers.

"We believe long-term organic growth guidance of 4-6% is too high and that consensus underestimates the disruptive effects of sales force realignment," the analyst said. "Additionally, we see fewer levers to drive EBIT after several years of aggressive cost savings." In addition, the stock is priced for a higher growth profile and does not take into account the potential for ROIC dilution from M&A.

Goldman cut FY 2013 EPS estimates from $4.12 to $4.10, FY 2014 from $4.41 to $4.32 and FY 2015 from $4.71 to $4.56.

For an analyst ratings summary and ratings history on Sigma-Aldrich click here. For more ratings news on Sigma-Aldrich click here.

Shares of Sigma-Aldrich closed at $76.89 yesterday.




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