UPDATE: JMP Securities Initiates Coverage on Alere on Multiple Positive Factors
In a report published Wednesday, JMP Securities analyst J.T. Haresco initiated coverage on Alere (NYSE: ALR) with a Market Outperform rating and $45.00 price target.
In the report, JMP Securities noted, “We are initiating coverage of Alere, a leading provider of rapid diagnostic tests, with a Market Outperform rating and $45 price target. Over the last few years, the company's inability to effectively integrate a large number of acquisitions has disappointed many investors. While this integration is still a work in progress, we believe that product-driven revenue growth (Alere I, Alere Q, Triage), a strategic plan to improve cash flow and operating margins, low investor expectations, and an attractive valuation (12x vs. a peer average of 37x) provide a good backdrop for more value-oriented investors. Our $45 price target is based on a blended P/E multiple of 13x our 2015 EPS estimate of $3.15 (vs. consensus of $3.06) and an EV/Rev multiple of 2.5x our 2015 revenue estimate of $3.3B.”
Alere closed on Tuesday at $35.31.
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