Goldman Sachs Reiterates Sell Rating, Raises PT on Varian Medical Systems

In a report published Monday, Goldman Sachs Group reiterated its Sell rating on Varian Medical Systems

, and raised its price target from $50.00 to $52.00. Goldman Sachs noted, “Commentary from most major hospital capex vendors indicated that overall hospital capex spending took a sequential step lower in 2QCY12. Moreover, hospitals continue to shift capex budget prioritization toward HCIT spending to capture government incentives for electronic medical record (EMR) implementations. We now see overall capex budgets in 2012 as flat yoy at best. This compares to up low-single digits for the past two years, by our estimates. Still, our post earnings estimate revisions already largely captured the new capex environment.” Varian Medical Systems closed on Friday at $59.58.