UPDATE: Oppenheimer Downgrades Nordson Corporation to Perform, Reiterates $70 PT on Near-Term Outlook

In a report published Friday, Oppenheimer analyst Christopher Glynn downgraded the rating on

from Outperform to Perform, but reiterated the $70.00 price target. In the report, Oppenheimer noted, “We are downgrading shares of NDSN to Perform from Outperform, as we believe the near-term outlook warrants a correction, and anticipate lack of medium-term catalysts. FY3Q guidance for $1.00-1.09 compares to $1.15 consensus, with OM guidance for 24% at the midpoint, which would reflect down about 300 bps y-o-y. Prior outlook had suggested opportunity for flat full-year margins (including acquisitions) if similar organic growth as FY12 (indicated as probable). We now expect 250-300 bps OM contraction reflecting lower volumes, and (in our view) a potentially protracted time horizon of material ADS OM dilution from recent deals. We have a highly constructive view on NDSN's ability to drive margins longer term.” Nordson Corporation closed on Thursday at $73.14.