UPDATE: Brean Capital Upgrades Analogic Following Marketing Day

In a report published Tuesday, Brean Capital analyst Jason Wittes upgraded the rating on

from Hold to Buy, and named a $110.00 price target. In the report, Brean Capital noted, "We are upgrading ALOG to a Buy with a $110 target price. This follows a day of marketing spent with President and CEO James (Jim) Green in Boston last week. While Jim said nothing specifically new from the last earnings call, he did provide greater color on some of the underlying opportunities, and we expect the business to both uptick and be more predictable going into F2016: 1) growth will be led by ultrasound, which is growing double digits this year, but should get a major boost from an expanded distribution agreement with a major OEM—the handheld device, undergoing field testing in F2015, should also begin selling into the dialysis market (we are projecting 16-17% growth in F2016 from 10% in F2015); 2) the medical imaging business has stabilized, and Siemen's expected 3D Tomosynthesis approval provides a near-term catalyst (we are projecting a 3% increase in F2016 from flat in F2015); 3) Security fundamentals remain strong and the backlog is at record levels, however, given the inherent lumpiness of this business, the outlook for the second half of F2015 remains strong, but management admits they don't have visibility into F2016 (we are projecting 10% growth in F2016 from 13% in F2015) - this excludes any upside from the company's Rapid DNA systems, which was recently cleared by the Supreme Court and so far at least 28 states have expressed an interest; and 4) margins should continue to improve 100-200bp per annum, reaching 15% by 2018." Analogic closed on Monday at $87.57.