Goldman Sachs Comments on Mindray Medical (MR) Following Q2 Results

Goldman Sachs maintained a Neutral rating on Mindray Medical (NYSE: MR) with a price target of $30.10 (from $30.80). Comments follow Q2 results.

Analyst Wei Du said, "China revenue growth continued to decelerate 3.4% yoy to US$152.5 mn, as hospitals were reluctant towards capex spending. Management is confident on 2H recovery in China growth due to pick-up in tender activity and lower comp, but it lowered full-year revenue guidance to 10%+ yoy in 2014 (from 15%+) as well as non-GAAP NPAT guidance to negative mid-single-digit growth (from flat) on concerns over growth in North America and the CIS region in 2H. Int'l sales were +13.9% yoy in 2Q, thanks to 40% growth in North America with the consolidation of Zonare and c.30% growth in APAC offsetting weak sales in CIS regions/Venezuela, which have been hurt by geopolitical impact and currency fluctuations. IVD segment and other revenues led the revenue growth, up 11.3%/26.3% yoy, with reagent sales up 24% yoy (41.2% of IVD segment revenue). GP margin was dragged down by the Zonare impact, yet mgmt guided for mid-50% GP margin on better product mix."

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

Shares of Mindray Medical closed at $29.97 yesterday.

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