J.P. Morgan Reiterates Neutral Rating on Accuray (ARAY)

J.P. Morgan is out with a research report this morning, where it reiterates its Neutral rating on Accuray

; it has a $6.00 price target on the stock. The J.P. Morgan analysts cited the company's recently reported earnings report, which was in-line with the expectations. With revenues down, low visibility, an improving but still-cautious hospital capex market, and increased competition, the analysts do not see a near-term catalyst for either multiple expansion or an inflection toward profitability and as the stock is most likely to remain range-bound in the near-term. As for valuation, the analysts noted, “We value ARAY on an EV/CY11E sales basis, and apply a 0.9x multiple (discount to the peer group) to our CY11 sales estimate to arrive at our Dec 2011 price target of $6.”