Barclays on U.S. Diagnostics: Q2 Preview; 2H Volume Recovery Likely Slower Than Expected
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Rating Summary:
4 Buy, 11 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Barclays on U.S. Diagnostics: Q2 Preview; 2H volume recovery likely slower than expected
Barclays analyst, C. Anthony Butler, said, "We discuss key themes and expectations for June-quarter earnings for our US Diagnostics coverage. Our Overweight names include Gen-Probe (Nasdaq: GPRO), Qiagen (Nasdaq: QGEN) and Sequenom (Nasdaq: SQNM)."
"Second half volume pick-up likely to be slower than expected: With high
unemployment rates proving stickier than expected, and a resurgence of macro concerns weighing on jobs growth, we expect companies to moderate 2H outlooks somewhat. Guidance for most companies within our coverage was back end loaded, driven by easing comps and assumptions around a steady volume recovery. We believe recent stock action reflects a resetting lower of investors' expectations."
"Emerging markets remain a bright spot. China is a particular focus, as the
government continues to invest in expanding access to basic healthcare and
improving the quality of its hospital infrastructure...New product cycles the best idea, in our view: Despite macro pressures, customers continue to spend on differentiated technologies that offer a distinct value proposition."
"With the take-out premium shaken out, we highlight GPRO as a fundamentally strong story with a maturing pipeline over the course of this year...Also, with clinical data on its T-21 assay due for release, and commercial plans ramping up, we believe SQNM will benefit from increasing investor interest in 2H 2011."
Barclays analyst, C. Anthony Butler, said, "We discuss key themes and expectations for June-quarter earnings for our US Diagnostics coverage. Our Overweight names include Gen-Probe (Nasdaq: GPRO), Qiagen (Nasdaq: QGEN) and Sequenom (Nasdaq: SQNM)."
"Second half volume pick-up likely to be slower than expected: With high
unemployment rates proving stickier than expected, and a resurgence of macro concerns weighing on jobs growth, we expect companies to moderate 2H outlooks somewhat. Guidance for most companies within our coverage was back end loaded, driven by easing comps and assumptions around a steady volume recovery. We believe recent stock action reflects a resetting lower of investors' expectations."
"Emerging markets remain a bright spot. China is a particular focus, as the
government continues to invest in expanding access to basic healthcare and
improving the quality of its hospital infrastructure...New product cycles the best idea, in our view: Despite macro pressures, customers continue to spend on differentiated technologies that offer a distinct value proposition."
"With the take-out premium shaken out, we highlight GPRO as a fundamentally strong story with a maturing pipeline over the course of this year...Also, with clinical data on its T-21 assay due for release, and commercial plans ramping up, we believe SQNM will benefit from increasing investor interest in 2H 2011."
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