UPDATE: JP Morgan Downgrades Life Technologies to Neutral Pending Visibility on Emerging and Applied Markets
JP Morgan lowered its rating on Life Technologies (NASDAQ: LIFE) from Overweight to Neutral and reduced its price target from $52, to $46.
JP Morgan commented, "Since the merger of ABI and IVGN, we have seen a series of missteps from LIFE, as the company has failed to adequately compete against ILMN in sequencing, or move nimbly enough into applied markets and away from the challenged research end market. With management expecting both a benefit from the roll-off of FX hedges, and ramp in growth in 2H12, aided by Ion Proton, we believe it is prudent to move to the sidelines, as we continue to see academic research budgets in the U.S. and Europe as being under pressure. We look to consider becoming more constructive pending improved visibility on the sequencing franchise, as well as a comprehensive strategy to increase margins and exposure to emerging and applied markets."
Life Technologies closed at $41.26 on Tuesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.