Canaccord Optimistic On IDEXX Laboratories Catalyst One Rollout

In a report published Tuesday, Canaccord analyst Mark Massaro upgraded IDEXX Laboratories IDXX from Buy to Hold and raised the price target form $116.00 to $148.00 on the rollout of Catalyst One.

Massaro wrote, "We believe the rollout of Catalyst One in Q4/14 will enable IDEXX to capture share in the lower-volume vet market and accelerate 2015 revenue growth to 9%. We believe IDXX can achieve double-digit organic revenue growth by 2016 driven by increased penetration and conversion to Catalyst Dx, increased cross-selling in the US from its revamped sales force, and significant global expansion."

Canaccord raised its 2015 revenue estimate from $1,605 million to $1,635 million, versus consensus of $1,616 million. The 2015 EPS estimate was also increased from $4.32 to $4.38.

The analyst sees 2016 EPS coming in at $5.00, assuming more than a 14 percent EPS growth on revenues of $1,800 million. This estimate is consistent with IDEXX Laboratories goal of double-digit revenue growth.

The stock is currently trading at $135.14, up 1.9 percent.