UPDATE: Bank of America Downgrades Mindray Medical to Neutral Following Disappointing 1Q13 Results
In a report published Wednesday, Bank of America analyst Serena Shao downgraded the rating on Mindray Medical International Ltd. (NYSE: MR) from Buy to Neutral, and lowered the price target from $39.50 to $38.00.
In the report, Shao noted, “Mindray reported a disappointing 1Q13 Result with Sales/ Earnings (non GAAP adjusted) missing consensus by -6%/ -10% respectively. The weak performance is mainly due to emerging market sales being disrupted by currency fluctuations and tougher import policies as well as political instability; with revenue growth in these industries flat during 1Q. As these regions accounted for ~30% of total sales and have enjoyed more than 20%+ growth in the past (historical data in Table 2), we believe this is a significant and fundamental change for Mindray's business stemming from the risk of greater growth reliance coming from these markets.”
Mindray Medical International Ltd. closed on Tuesday at $37.42.
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