UPDATE: Goldman Sachs Upgrades Mindray Medical International to Buy
Goldman Sachs upgraded Mindray Medical International Limited (NYSE: MR) from Neutral to Buy.
Goldman Sachs commented, "We upgrade Mindray to Buy (from Neutral) after its recent underperformance (-3% vs. 12% sector average since September 24) and improving risk/reward, driven by 1) strong China and emerging markets sales growth (2013E: 20% vs. 25% in 9M12); 2) margin improvement due to higher IVD reagent sales (50% of total IVD sales by end 2013 vs. 37.4% in 3Q12); and 3) our belief that market concerns on its US earnings weakness are overdone. Our new 12-month Director's Cut-based target price implies 18% upside potential and we see current valuation as a good entry point."
Mindray Medical International closed at $33.72 on Thursday.
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Tags: Goldman Sachs