UPDATE: Bank of America Downgrades Sigma-Aldrich Corporation to Underperform, Reiterates $78 PT on Solid Portfolio, Limited Upside

In a report published Monday, Bank of America analyst Derik de Bruin downgraded the rating on Sigma-Aldrich Corporation

from Neutral to Underperform, but reiterated the $78.00 price target. In the report, de Bruin noted, “While we are positive on SIAL's diverse product portfolio, relative business stability, and emerging market exposure, due to a combination of tough end markets and what we believe are execution issues, we think that the company's efforts to revamp organic growth may take longer than expected. In addition, if organic growth lags, then it may more difficult for SIAL to realize margin expansion. As a result, given the current valuation, we think that SIAL shares are likely to lag life sciences peers and that the multiple is more likely to contract than expand.” Sigma-Aldrich Corporation closed on Friday at $77.45.