UPDATE: Bank of America Reiterates Buy Rating, Lowers PT on FEI Company on Solid Q2/Weak 2H14 Guidance

In a report published Thursday, Bank of America analyst Derik de Bruin reiterated a Buy rating on FEI Company FEIC, but lowered the price target from $100.00 to $96.00. In the report, Bank of America noted, “FEIC reported total revenues of $237mn (+6.5% y/y, +5.3% organic, -0.2% F/X, +1.4% acquisition), above our est. of $236mn (+5.9% y/y; +4.7% organic), Street$235mn. GAAP gross margin was 46.4% (-160bps y/y), below our 47.0% est. on timing and mix-related issues. Non-GAAP EPS of $0.70 were 3c ahead of our est. and 5c ahead of Street's. Overall, Q2 results were in-line with guidance, as +22% organic Industry Group growth helped offset a -9% decline in the Science Group due to Q1 Material Science order delays, but with Science bookings up +14% y/y.” FEI Company closed on Wednesday at $87.10.