UPDATE: Bank of America Lowers PT on Pall on Tepid Macro Environment
In a report published on Tuesday, Bank of America analyst Derik de Bruin lowered the price target on Pall (NYSE: PLL) from $74.00 to $72.00 and reiterated a Neutral rating.
In the report, Bank of America noted, "Overall, the macro environment continues to be mixed with broad based pressures on capital spending and uncertainty regarding project timing. Life Sciences LC sales growth was +4.7% y/y, with orders +11% y/y as strong performance in Biopharmaceuticals (+11% y/y) and Medical (+10% y/y, some one-time Haemonetics sales) offset weak capital spending and general sales lumpiness in Food & Bev (-19% y/y). Industrial LC sales growth was -5.2% y/y, with orders down 1% y/y, as softness in the Asian markets continued to weigh heavily on Process Technologies (-11% y/y) and Microelectronics (-10% y/y) despite strong growth in Aerospace (+26%). PLL expects recovery in the industrial markets to be more protracted than previously expected and cut guidance accordingly. However, we are encouraged by the ongoing restructuring actions, which have so far resulted in positive pricing and lower costs, and see the addition of a new CFO and a revamp of middle mgmt as positives. However, significant execution challenges remain and with no signs of an immediate rebound in key areas of weakness like Microelectronics and Process Technology in Asia, we believe shares are fairly valued and reiterate our Neutral rating."
Pall closed on Monday at $68.33.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.