UPDATE: Jefferies Maintains Buy on Varian; Lowers PT from $74 to $65

Jefferies reiterated a Buy rating on Varian Medical Systems

and lowered its price target from $74 to $65. Jefferies noted, “VAR posted mixed F3Q with revenues $5mn light but EPS $0.03 on sequential margin improvement. However, orders were weaker and guidance was lowered for second consecutive Q mainly on F/X headwinds. We are cutting forecasts and PT to $65 to account for F/X pressures, the pending 2.3% Med-tech tax, and further uncertainty surrounding orders based on reimbursement and competition.” Varian Medical Systems closed at $57.31 on Wednesday.