UPDATE: Piper Jaffray Downgrades MWI Veterinary Supply to Neutral on Headwinds

Piper Jaffray reduced its rating on MWI Veterinary Supply MWIV from Overweight to Neutral and lowered its price target from $105 to $92. Piper Jaffray commented, "We are lowering our rating on MWIV to Neutral and bringing our PT to $92 from $105 as we believe higher commodity prices and the drought throughout most of the country could create headwinds for MWIV's production animal business. Due to this year's earlier spring, we believe companion animal market growth might be lower than Street expectations as some revenues were likely pulled forward into F2Q (March) from the seasonally strong F3Q (June) quarter. While MWIV is a high quality company with a very good management team, we believe the stock's premium valuation warrants another beat and raise quarter to sustain its valuation." MWI Veterinary Supply closed at $93.63 on Tuesday.