Jefferies & Company Reiterates Hold Rating on Immucor (BLUD)

Jefferies & Company is out with a research report this morning, where it reiterates its Hold rating on Immucor

; it has a $21.00 price target on the stock. The Jefferies analysts added on FY 2012 estimates of $376 million in revenue and EPS of $1.40, due to slowing organic revenue growth (from crimped pricing), somewhat offset by product developments and better operating leverage. The analysts expect FY12 Echo orders in the range of 200 – 220 as BLUD “continues to penetrate the mid-volume hospital market that has yet to switch to an automated platform.” As for valuation, the Jefferies analysts remarked, “Given the company's sales growth rate (estimated at 9%) and the current group PEGs, we believe BLUD deserves to trade at its current level, or at 16X CY11E EPS of $1.34, implying a price target $21. Risks include the subpoena from the U.S. Dept of Justice, competition, FDA regulatory risk, and development of future products.”