Jefferies Cuts Price Targets on Agilent (A) Due to a Lower Cash Flow Forecast

Jefferies is reiterating its Buy rating on shares of Agilent (NYSE: A), but is cutting its price target from $65 to $60.

Due to environmental uncertainties, the firm has taken a more conservative stance and has cut its 2012 EPS estimate from $3.30 to $3.20. Also for the full year 2012, Jefferies forecasts composite organic revenue growth of 5 percent and incremental OP margins of 34 percent.

An analyst at Jefferies comments, "Our work reveals a highly significant historical correlation between A's Electronic Measurement franchise organic revenue trends and those of DHR's T&M segment (r-squared: 97%), NATI (r-squared: 97%) and an average of relevant industrialoriented peers (r-squared: 87%). Based on recent 3Q11 operating results exhibited by such respective franchises, the strength of the historical correlations suggest A's fiscal-4Q11 EMG organic revenues could have expanded 11%, slightly ahead of our formal 9.5% forecast."

For 2013, Jefferies is currently estimating EPS of $3.45.

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

Shares of Agilent closed at $37.46 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Agilent (A) PT Raised to $150 at Jefferies
• Deere (DE) PT Lowered to $728 at UBS as Agricultural Machinery Cycle Gets Closer
• Beike (BEKE) PT Raised to $23 at Morgan Stanley