UPDATE: Goldman Sachs Upgrades Mindray Medical International to Buy

Goldman Sachs upgraded Mindray Medical International Limited

from Neutral to Buy. Goldman Sachs commented, "We upgrade Mindray to Buy (from Neutral) after its recent underperformance (-3% vs. 12% sector average since September 24) and improving risk/reward, driven by 1) strong China and emerging markets sales growth (2013E: 20% vs. 25% in 9M12); 2) margin improvement due to higher IVD reagent sales (50% of total IVD sales by end 2013 vs. 37.4% in 3Q12); and 3) our belief that market concerns on its US earnings weakness are overdone. Our new 12-month Director's Cut-based target price implies 18% upside potential and we see current valuation as a good entry point." Mindray Medical International closed at $33.72 on Thursday.