Goldman Sachs Updates Bruker Corp. Estimates

After the market close, Bruker Corp.

announced the closing of its acquisitions of the Atomic Force Microscopy and the Optical Industrial Metrology instruments businesses from Veeco Instruments, Inc.

for $229.4 mn in cash. Bruker expects the acquired businesses to add $20 mn and +$130 mn to 4Q2010 and FY2011 revenues, respectively. In addition, it expects these businesses to add $0.06-$0.08 to FY2011 adjusted EPS. Goldman is raising its 12-month price target to $16 to reflect the new FY2011E EPS of $0.89, $0.81 previously, and blended valuation of P/E and EV/EBITDA. The PT implies a P/E of 18.0X FY2011E EPS, slightly above peer group given stronger revenue growth from recent bolt-on acquisitions and stimulus. Risks to the target price include share loss in NMR, slowing revenue growth post-stimulus, and lack of margin expansion. BRKR is trading higher at $14.48