BWS Financial Downgrades Life Sciences Research (LSR) to Hold; Suggests Considering CEO Offer

August 3, 2009 8:18 AM EDT

BWS Financial downgrades Life Sciences Research (NYSE: LSR) from Buy to Hold.

BWS analyst says, "We believe, after Life Sciences Research (LSR) reported Q2 results, that the best avenue for shareholders could be accepting the offer made by CEO Andrew Baker. LSR is not seeing a return to normalcy as fast as its peers and forcing us to downgrade the shares to a Hold Rating...Over capacity has removed the urge by customers to book projects early. The lack of clarity and harsh pricing environment removes the premium that used to be associated with LSR shares. High margin specialty projects were a smaller portion of revenue in Q2. The unfavorable product mix led to LSR depending on price cuts to prevent operating margins from declining significantly from Q1."

"We have made changes to our estimates for 2009 and 2010. LSR could achieve revenue of $188.7 million in 2009 with net income, excluding foreign exchange, of $9.9 million, or $0.69 per share. For 2010, revenue could increase to $203.9 million with net income, excluding foreign exchange, of $12.4 million, or $0.86 per share."

To see more analyst ratings on LSR Click Here.

Life Sciences Research, Inc., together with its subsidiaries, operates as a contract research organization worldwide.

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