Recent Investment Analysts’ Ratings Updates for Cepheid (CPHD)
A number of stock research firms have changed their ratings and price targets for Cepheid (NASDAQ: CPHD) during the last seven days:
- Cepheid is now covered by analysts at JPMorgan Chase. They set an “overweight” rating and a $47.00 price target on the stock. They wrote, “As an early leader in the rapidly-growing molecular diagnostics industry, CPHD already has a large commercial installed base of >2,650 of its GeneXpert systems, which can run any of the company’s expanding menu of diagnostic tests; the company has 11 FDA-cleared tests available (14 internationally), a number set to grow to ~25 by 2015, while expanding the addressable market by >$1B. After evaluating competitive offerings, including through a proprietary lab survey, we are confident that the company’s market leadership is sustainable.”
- Cepheid had its price target lowered by analysts at ISI Group from $35.00 to $32.50. They now have a “sell” rating on the stock. They wrote, “Cepheid negatively preannounced its 3Q earnings. … The company stated that this revenue shortfall was due to an intermittent interruption in the supply of Xpert cartridge components. … This is CPHD’s third straight Q of mis-steps, and the reiteration of revenue guidance implies a very strong fourth quarter. Given that the hospital CapEx environment is unlikely to improve in the near term and that EPS guidance is likely to be revised downward (we are currently below the low end of CPHD’s FY12 revenue guidance), we think that the EV/Revenue multiple needs to fall to 5-7x vs. the current 7-9x trading range.”
- Cepheid had its “outperform” rating reaffirmed by analysts at Oppenheimer. They now have a $43.00 price target on the stock.
- Cepheid had its “overweight” rating reaffirmed by analysts at Piper Jaffray. They now have a $32.00 price target on the stock.
- Cepheid had its “buy” rating reaffirmed by analysts at UBS AG. They now have a $43.00 price target on the stock.
- Cepheid had its price target lowered by analysts at Credit Suisse to $41.00. They now have an “outperform” rating on the stock.
- Cepheid had its “buy” rating reaffirmed by analysts at Goldman Sachs. They now have a $46.00 price target on the stock. They wrote, “While the 3Q preannouncement was an area of focus, we believe shares were weak following the meeting, largely due to investor disappointment over guidance. Management expects ‘commercial’ revenues to generate a five-year CAGR of high-teens to 20%. This excludes HBDC revenues and is not entirely comparable to the Street’s consensus revenue CAGR of 24% (2012-15E). For reference, we estimate HBDC will contribute an average of over 200bp to growth annually in those years. Lower FY2013 GM guidance was largely due to allocation of the MedTech tax to COGS (we had previously applied it in G&A). When adjusting for this, guidance came in 70bp lower than our forecast. On operating margins, FY2013 guidance was 300bp lower than our forecast (including options), as R&D investments are likely to be higher than previously expected. While this lack of operating leverage was disappointing, we remain bullish on CPHD’S top-line growth potential. In that regard, we remain focused on improved manufacturing execution going forward but also place an emphasis on the potential for new products (protein detection, FFPE compatibility, high-level multiplexing) to sustain CPHD’s industry leading top-line growth profile. Lastly, we believe this combination of strong top-line and limited operating leverage supports our incorporation of M&A potential.”
- Cepheid had its “hold” rating reaffirmed by analysts at Cantor Fitzgerald. They wrote, “Following the disappointing 3Q preannouncement, the key highlight from CPHD Analyst Day was the focus on the company’s future. … We believe management has 3Q manufacturing issues under control (recall 1Q issues were fully addressed ahead of expectations); however, with shares trading at 5.8x EV/2013E sales (85% premium to a peer group), we think significant upside to valuation is limited at this point and look for further clarity on the HBDC business contribution near-term, share gain potential in the CT/NG segment, and more consistent margin improvements.”
- Cepheid had its “buy” rating reaffirmed by analysts at Canaccord Genuity. They now have a $50.00 price target on the stock. They wrote, “We reiterate our BUY rating and $50 price target on CPHD given its solid 20% revenue growth, large customer base (approaching 3,000), and an unmatched test menu (11 FDA approved assays). Cepheid’s analyst day provided an update to investors on its long-term financial targets, competitive advantages, and future products. However, due to three consecutive missed quarters, no EPS visibility, and lengthening selling cycles, CPHD shares experienced a pullback.”
- Cepheid is now covered by analysts at Cowen. They set an “outperform” rating on the stock.
Shares of Cepheid traded up 0.77% during mid-day trading on Wednesday, hitting $35.45. Cepheid has a one year low of $29.90 and a one year high of $46.00. The company’s market cap is $2.340 billion.
Cepheid is a molecular diagnostics company that develops, manufactures and markets integrated systems for testing in the Clinical market, as well as for application in its Non-Clinical biothreat, industrial and partner markets.