UPDATE: Goldman Sachs Upgrades Varian Medical Systems to Neutral; Downside Less Evident Now

Goldman Sachs upgraded Varian Medical Systems VAR from Sell to Neutral and raised the price target from $62.00 to $79.00. Goldman Sachs commented, "We upgrade shares of Varian Medical Systems (VAR) to Neutral from Sell, as we see business fundamentals stabilizing and consensus estimates now look reasonable. Our Sell thesis on the stock has largely played out with annual Street numbers coming down 8%-10% since 2010. While Varian's core US/EU markets face pressure, the degree of that pressure looks to be abating (predominantly in the US). Near-term competitive dynamics also look more manageable. Given the rebasing of expectations, we see the risk/reward as more balanced." Varian Medical Systems closed at $72.01 on Wednesday.