Piper Jaffray upgraded Pacific Biosciences of California (NASDAQ: PACB) from Neutral to Overweight with a price target of $9.00 (from $7.00).

Analyst William R. Quirk commented, "Pacific Biosciences reported 3Q15 revenue of $13.9M, below our $16.4M estimate and the Street's $15.8M expectations. Ongoing EPS of ($0.28) was in line with our estimate and below consensus of ($0.27). During the quarter, we estimate PacBio validated ~4 RS II instruments, but also placed several additional systems under lease arrangements. Consumable usage of an annualized pull-through (~$151K PJC estimate) was above management's expectations (~$120K). Management had a strong showing at ASHG with solid traffic at their booth, which is turning into early order flow for Sequel and they raised their FY15 revenue growth guidance to 50%-55%, or $90.9M-$93.9M (was >40%; $84.8M). On the heels of the launch and the early interest, we are raising our rating from Neutral to Overweight and increasing our price target to $9 (was $7) based on ~7x FY17E EV/Rev."

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Shares of Pacific Biosciences of California closed at $7.13 yesterday.