Dougherty & Co Downgrades Bio-Rad Labs (BIO) to Neutral; Slow Start to '12, Margin Pressure Could Continue in '13
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Price: $356.26 --0%
Rating Summary:
9 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
9 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Dougherty & Co downgraded Bio-Rad Labs (NYSE: BIO) from Buy to Neutral with a price target of $108.00.
Analyst, Junaid Husain, said, "We’re downgrading BIO following 1Q:12 results last night. Our NEUTRAL rated stance is predicated on the following: 1) A slower-than-expected start to the new year on the sales front – although management is maintaining full-year sales guidance of 3.5% to 4.5% on an FX-neutral basis. 2) Margin pressure which management has said could continue into CY13 (i.e., ERP, R&D initiatives, etc.). 3) With the stock currently trading at ~16.6x on our new CY13 EPS estimate of $6.50 (vs. peer valuation of 15-17x), we believe it’s fully-valued at these levels, given the pending headwinds."
"Our new CY12 estimates: Sales of $2,102MM (previous $2,105MM) and EPS of $5.46 (previous $6.00). Our new CY13 estimates: Sales of $2,199MM (previous $2,203MM) and EPS of $6.50 (previous $7.50)."
For an analyst ratings summary and ratings history on Bio-Rad Labs click here. For more ratings news on Bio-Rad Labs click here.
Shares of Bio-Rad Labs closed at $108.15 yesterday.
Analyst, Junaid Husain, said, "We’re downgrading BIO following 1Q:12 results last night. Our NEUTRAL rated stance is predicated on the following: 1) A slower-than-expected start to the new year on the sales front – although management is maintaining full-year sales guidance of 3.5% to 4.5% on an FX-neutral basis. 2) Margin pressure which management has said could continue into CY13 (i.e., ERP, R&D initiatives, etc.). 3) With the stock currently trading at ~16.6x on our new CY13 EPS estimate of $6.50 (vs. peer valuation of 15-17x), we believe it’s fully-valued at these levels, given the pending headwinds."
"Our new CY12 estimates: Sales of $2,102MM (previous $2,105MM) and EPS of $5.46 (previous $6.00). Our new CY13 estimates: Sales of $2,199MM (previous $2,203MM) and EPS of $6.50 (previous $7.50)."
For an analyst ratings summary and ratings history on Bio-Rad Labs click here. For more ratings news on Bio-Rad Labs click here.
Shares of Bio-Rad Labs closed at $108.15 yesterday.
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