UPDATE: Jefferies Color on Nanosphere PT Decrease

Jefferies, which

on shares of Nanosphere

, is providing some color on the stock. “We are lowering our 2011 and 2012 revenue forecasts to $3.3M (from $4.5M) and $9M (from $17M), respectively, to reflect the CYP2C19 setback and the impact of fewer new Verigene system placements as a result of the delay,” Jefferies writes. “Our price target moves to $2 (from $3.50) on lower cash flow forecasts and to reflect incremental dilution from its recent equity offering.” Nanosphere closed Tuesday at $1.64.