UPDATE: ISI Group Reduces PT to $32.50 on Cepheid Following Negative Pre-Announcement

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ISI Group reiterated its Underweight rating on Cepheid
CPHD
and lowered its price target from $35 to $32.50. ISI Group noted, "Cepheid negatively preannounced its 3Q earnings. … The company stated that this revenue shortfall was due to an intermittent interruption in the supply of Xpert cartridge components. … This is CPHD's third straight Q of mis-steps, and the reiteration of revenue guidance implies a very strong fourth quarter. Given that the hospital CapEx environment is unlikely to improve in the near term and that EPS guidance is likely to be revised downward (we are currently below the low end of CPHD's FY12 revenue guidance), we think that the EV/Revenue multiple needs to fall to 5-7x vs. the current 7-9x trading range." Cepheid closed at $39.15 on Wednesday.
Posted In: Analyst ColorPrice TargetPre-Market OutlookAnalyst RatingsISI Group
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