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Leerink Swann Downgrades Sigma-Aldrich (SIAL) to Market Perform; Europe A Sore Spot For 2012, SIAL Overexposed

January 6, 2012 7:57 AM EST
SIAL Hot Sheet
Rating Summary:
    2 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Leerink Swann downgraded Sigma-Aldrich (NASDAQ: SIAL) from Outperform to Market Perform, price target range $66-$70 (from $74-78.

Leerink analyst says, "We are downgrading SIAL's stock with a view that upside to Street forecasts for SIAL going forward could be difficult to achieve, and absent upside, a multiple in line with its peer group is more appropriate than a premium multiple."

"From a portfolio management standpoint, we also wished to lighten up on our exposure to Europe. SIAL derives ~37% of its revenues from Europe, which, when combined with our Outperform ratings on Bruker (Nasdaq: BRKR), Qiagen (Nasdaq: QGEN), PerkinElmer (NYSE: PKI), and Waters (NYSE: WAT), left us more exposed to deteriorating economic conditions in this region than we'd like to be."

Leerink cuts FY12 EPS estimate from $4.04 to $3.98 and FY13 from $4.33 to $4.27.

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 $63.12 yesterday, with a 52 week range of $56.18-$76.16.


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