UPDATE: Piper Jaffray Initiates Coverage on PerkinElmer on Multiple Positive Factors

In a report published Tuesday, Piper Jaffray analyst William R. Quirk initiated coverage on

with an Overweight rating and $46.00 price target. In the report, Piper Jaffray noted, “We are initiating coverage on PerkinElmer with an Overweight rating and $46 price target (19x F2014 EPS of $2.44). Our Overweight rating reflects expectations for PerkinElmer to benefit from improving U.S. birth trends, expanded newborn testing OUS, recent collaborations (e.g. Verinata) as well as ongoing expansion into high-growth markets (e.g. informatics, China NAT screening/immunoassay) and geographies (emerging markets). Additionally, we anticipate operating margin expansion as FY13 and FY14 unfold, with ongoing restructuring initiatives, acquisition integration and synergies all driving improvements.” PerkinElmer closed on Monday at $37.94.