UPDATE: ISI Group Reduces PT to $30.50 on Cepheid Post Analyst Day

ISI Group reiterated its Underweight rating on Cepheid

and reduced its estimates from $32.50 to $30.50. ISI Group commented, "Based on yesterday's pre- announcement and management's commentary at today's analyst meeting, we are revising our FY'12 revenue estimates to $329.8MM, below the company's guidance of $333-347MM. This implies 4Q revenues of $90.5MM (well below the benchmark $95.0MM that CPHD needs in order to hit guidance).Our revised estimates also reflect a more conservative long term revenue growth expectation, limited OpEx leverage during a period of increased R&D and S&M investment, and a challenging hospital CapEx environment in the near term. We have reduced our PT from $32.50 to $30.50 (~5x 2013 EV/Revs) and reiterate our Underweight rating on shares of CPHD." Cepheid closed at $35.18 on Thursday.