UPDATE: ISI Group Initiates PerkinElmer with Overweight, $29 PT on Demand for Inorganic Analysis

ISI Group initiated its coverage on PerkinElmer

with an Overweight rating and a price target of $29. ISI Group noted, "We are initiating coverage on shares of PerkinElmer with an Overweight rating and a price target of $29.00, which on a forward basis equates to ~10x EV/EBITDA and ~13x operating EPS. Our thesis for PKI is based on a resurgence in diagnostics and strong contributions from Caliper sustaining robust Human Health growth, continued demand for inorganic analysis solutions (particularly in applied markets) and the penetration of OneSource in emerging markets offsetting weakness in industrial growth, and a renewed focus on operating leverage which should result in high-teens margins over the medium-term." PerkinElmer closed at $24.90 on Monday.