UPDATE: Morgan Stanley Upgrades PerkinElmer to Overweight on Operating Margin Outlook
Morgan Stanley raised its rating on PerkinElmer (NYSE: PKI) from Equal-weight to Overweight and established a $38 price target.
Morgan Stanley said, "While recent margin expansion has been impressive, there is more to go. The benefits of levering a mid-single digit top line plus more efficient integration of acquired businesses & several ongoing initiatives provide a pathway towards 20%+ EBIT margins, which we model by 2016, yielding EPS forecasts ~2-8% > consensus thru 2015. … Over the last 8 quarters, organic growth has averaged nearly 7% and management sees mid-single digit growth outlook as appropriate. We model a 5% CAGR through 2015, superior to most peers in our coverage universe."
PerkinElmer closed at $32.09 on Thursday.
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