UPDATE: JP Morgan Cuts Target on CareFusion to $29

JP Morgan reiterates its Overweight rating on CareFusion (NYSE: CFN) and lowers its price target to $29 from $32 on operating margin concerns following a tough 4Q.

JP Morgan says, "Management reiterated its 20%+ operating margin target exiting FY14, indicating that in the lower top-line environment it could still get there but “in a different way.” We now forecast FY13 and FY14 operating margin of 17.8% and 18.2%, respectively (vs prior 18.4% and 18.9%). We assume CFN exits FY14 close to 20% as margin pressures ease and restructuring initiatives continue."

CFN closed at $24 a share yesterday.