Join        Login             Stock Quote

Gen-Probe (GPRO) Downgraded To 'Sector Perform' By RBC, PT Raised To $82.75

 May 01, 2012 01:05 PM

(By Balachander) Gen-Probe Inc. (NASDAQ:GPRO) shares were downgraded to "Sector Perform" from "Outperform" by RBC Capital Markets, which raised price target on the stock to $82.75 from $72.00.

The brokerage is of the view that Gen-Probe shares are fairly valued in light of the announcement that Hologic (NASDAQ: HOLX) will by the company for $82.75 per share.

"Given the EV of about 17x 2013 EPS, and widespread reports of the company running an unsuccessful sales process last spring, we do not anticipate any higher bids for the stock," RBC analyst Bill Bonello wrote in a note.

[Related -Hologic Inc. (HOLX) Q3 Earnings Preview: New, Old Management With A New Tone?]

Gen-Probe provides molecular tests and instruments, with a focus on products to detect sexually transmitted diseases (primarily Chlamydia and Gonorrhea) and screen donated blood.

RBC raised 2012 EPS estimate for the company to $2.65 from $2.60 and revenue estimate to $645 million from $642 million.

The brokerage said risks to its price target include any meaningful delays in new product launches, market share losses, unforeseen changes to the regulatory environment, and the potential that a sale of the company does not transpire for unknown reasons.

The stock, which has been trading in the 52-week range between $53.92 and $86.96, edged 0.06 percent lower to trade at $81.50 on Tuesday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Bearish Options In Play At Disney
More Articles on: Medical

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.