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UPDATE: Goldman Sachs Downgrades Sigma-Aldrich to Sell on Slower Growth, Limited P&L Levers

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In a report published Thursday, Goldman Sachs analyst Isaac Ro downgraded the rating on Sigma-Aldrich Corporation (NASDAQ: SIAL) from Neutral to Sell, and lowered the price target from $72.00 to $66.00.

In the report, Ro noted, “We believe long-term organic growth guidance of 4-6% is too high and that consensus underestimates the disruptive effects of sales force realignment. Additionally, we see fewer levers to drive EBIT after several years of aggressive cost savings. Meanwhile, shares are priced for a higher growth profile and do not take into account the potential for ROIC dilution from M&A. As a result, we lower our 12-month price target on lower estimates and multiples.”

Sigma-Aldrich Corporation closed on Wednesday at $76.89.

Latest Ratings for SIAL

Sep 2014KeyBancDowngradesBuyHold
Sep 2014
Jul 2014JP MorganMaintainsNeutral

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Posted-In: Goldman SachsAnalyst Color Downgrades Analyst Ratings


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