Leerink Swann Downgrades Alere (ALR) to Market Perform

May 11, 2012 10:44 AM EDT Send to a Friend
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Price: $35.45 +0.14%

Rating Summary:
    5 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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Leerink Swann downgraded Alere (NYSE: ALR) from Outperform to Market Perform, price target range cut to $19-20.

Analyst, Dan Leonard, said, "We’ve reduced our estimates to reflect an assumption that the outcome of ALR’s FDA inspection could result in a $0.20 annual detriment to EPS (though outcome is highly uncertain, and range could be $0.14 to $0.39, in our view). The primary pillars of our prior Outperform thesis (upside to numbers and upside to sentiment) no longer hold. While we already knew an FDA inspection was ongoing, the revenue magnitude of products exposed is ~2x our prior expectation, and the subpoena from the Office of Inspector General of the Department of Health and Human Services could complicate matters further. Thus, we have reduced our valuation to a range to $19 - $20 and downgrade the stock."

FY12 EPS estimate cut from $2.75 to $2.55 and FY13 from $2.74 to $2.54.

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

Shares of Alere closed at $22.30 yesterday.




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