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Investment Bank Trims Life Technologies' Q2 Revenue Estimate

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Macquarie Capital has trimmed its second-quarter revenue estimate for Life Technologies, saying that the shortfall is likely to come from the firm's Genetic Systems business.

Macquarie Analyst Jon Groberg said in a research note published today that the bank has lowered its Q2 revenue estimate to $950 million, down $17 million from its previous expectation. Groberg wrote in the note, "we now think that better than expected growth from Ion Torrent will be offset by market share losses in SOLiD."

He estimated that Life Tech will ship close to 900 Ion Torrent instruments this year, but said that he believes the firm's SOLiD platform is losing share to Illumina's HiSeq.

In addition, Groberg said that while he expects the firm's Molecular Biology business to face easier comparisons year over year than in the first quarter, "we do not anticipate a significant rebound in North American academic and government spending given recent budget cuts."

Despite the lower revenue forecast, Groberg maintained his earnings per share estimate of $.94, as well as an Outperform rating on the stock and a $68 price target. "We do not see a better value in the Life Sciences Tools universe," said Groberg.

In early Wednesday trade on the Nasdaq, shares of Life Tech were up a fraction of 1 percent at $50.82.

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