UPDATE: Bank of America Reduces PO to $19 on WuXi PharmaTech on Mixed Outlook

Bank of America reiterated its Buy rating on WuXi PharmaTech

but reduced its price objective from $19.50 to $19. Bank of America commented, "WuXi reported 3Q12 results that again beat our/consensus revenue and nonGAAP EPS by 1.7% and 16%/2.4% and 24%. Management narrowed its FY12 guidance to the upper end of the previous guided range, while expecting modest margin pressure in 2013. We raise our FY12 EPS by 3%, but reduce our FY13 rev/EPS by 2%/3%, and our PO accordingly. Trading at 10x 2013E PE with midteen's growth prospect in 2014E, strong balance sheet and healthy cash flow, we believe the margin pressure is more than reflected in the share price." WuXi PharmaTech closed at $15.19 on Monday.