UPDATE: Goldman Sachs Initiates Neutral on FEI On Expectations Of Shares To Perform In Line With LST Coverage

In a report published Tuesday, Goldman Sachs analyst Isaac Ro initiated a Neutral rating on FEI Company

and initiated a price target of $87.00. In the report, Goldman Sachs says "We initiate coverage of FEI Company (FEIC) with a Neutral rating and 12- month price target of $87 that implies 4% downside vs. our Life Science Tools (LST) coverage median of 3%. While FEIC offers an attractive growth profile and the potential for continued operating margin expansion, we expect shares will perform in line with our LST coverage universe as (1) new products are not enough to expand the TAM above consensus expectations in the near term, (2) gross margin improvement is well understood by the Street, (3) we see minimal upside in core endmarkets, and (4) current valuation represents a balanced risk/reward." FEI Company closed on Tuesday at $89.51.