UPDATE: Oppenheimer Downgrades Complete Genomics to Perform, Drops $8 PT

Oppenheimer lowers its rating on Complete Genomics GNOM to Perform from Outperform and removes its $8 price target as the company's fourth quarter results disappoint. Oppenheimer says, "We are downgrading GNOM to Perform from Outperform and removing our $8 price target after disappointing preliminary 4Q11 results highlighted by further price erosion, slower-than-expected backlog growth, and another operational misstep. Despite an estimated 21% sequential price decline in genome ASP, GNOM booked nearly 2,000 fewer genomes than our forecast. In addition, GNOM announced it fell 300 genomes short of its recently revised (12/14/11) guidance for delivery of 900 genomes in 4Q11. Based on the rapid decline in ASP (-36% since 1Q11) and deceleration in backlog additions, it is hard for us to get comfortable with the story against the backdrop of a challenging academic funding environment and a near-term need for capital." GNOM closed at $3.89 per share on Monday.