Barclays on U.S. Life Science Tools: Q2 Preview; Favorites are A, ILMN, WAT
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Price: $158.66 +1.51%
Rating Summary:
22 Buy, 6 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
22 Buy, 6 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on U.S. Life Science Tools: Q2 Preview; Favorites are A, ILMN, WAT
Barclays analyst says, "We discuss key themes for names within our Life Science Tools coverage, and present a preview of the upcoming June-quarter earnings season. Our high conviction longs are companies that can drive upside to numbers over the next 12-18 months using internal operational levers, and are exposed to attractive end-markets and geographies. Favorites into earnings are Agilent (NYSE: A), Illumina (Nasdaq: ILMN) and Waters (NYSE: WAT)."
"'Flight response' overdone, we are bullish on Agilent. Aggressive investments in LSG/CAG, funded by outsized incrementals in EMG, should drive future revenue growth and margin expansion. We believe our current 2012 estimates adequately account for an expected moderation in broad test and measurement end-markets as comps get tougher...High conviction, above-consensus 2012 estimates (revenue $7.3B vs cons $7.16B; EPS $3.40 vs. cons $3.28) reinforce our bullishness on Agilent, despite recent choppiness."
"Limited near-term risk, we like ILMN into the quarter: As the GA-to-HiSeq
replacement cycle moderates, investors are focused on the strength of underlying consumables demand, both in sequencing and microarrays. Despite uncertainty in broad research markets, we believe funding for genomics research, especially sequencing, remains robust..."
"WAT is a high conviction long. The company has concentrated exposure to
biopharma manufacturing quality control demand due to its leadership in liquid
chromatography. Given the protracted capex slowdown in this end-market, and increasingly positive commentary from all major players (Agilent, WAT, Shimadzu) on the beginnings of a robust 2-3 year long replacement cycle, we feel confident that WAT will continue to surprise to the upside..."
Barclays analyst says, "We discuss key themes for names within our Life Science Tools coverage, and present a preview of the upcoming June-quarter earnings season. Our high conviction longs are companies that can drive upside to numbers over the next 12-18 months using internal operational levers, and are exposed to attractive end-markets and geographies. Favorites into earnings are Agilent (NYSE: A), Illumina (Nasdaq: ILMN) and Waters (NYSE: WAT)."
"'Flight response' overdone, we are bullish on Agilent. Aggressive investments in LSG/CAG, funded by outsized incrementals in EMG, should drive future revenue growth and margin expansion. We believe our current 2012 estimates adequately account for an expected moderation in broad test and measurement end-markets as comps get tougher...High conviction, above-consensus 2012 estimates (revenue $7.3B vs cons $7.16B; EPS $3.40 vs. cons $3.28) reinforce our bullishness on Agilent, despite recent choppiness."
"Limited near-term risk, we like ILMN into the quarter: As the GA-to-HiSeq
replacement cycle moderates, investors are focused on the strength of underlying consumables demand, both in sequencing and microarrays. Despite uncertainty in broad research markets, we believe funding for genomics research, especially sequencing, remains robust..."
"WAT is a high conviction long. The company has concentrated exposure to
biopharma manufacturing quality control demand due to its leadership in liquid
chromatography. Given the protracted capex slowdown in this end-market, and increasingly positive commentary from all major players (Agilent, WAT, Shimadzu) on the beginnings of a robust 2-3 year long replacement cycle, we feel confident that WAT will continue to surprise to the upside..."
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