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Investment Firms Raise Estimates for Complete Genomics, Danaher

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Two investment firms today separately raised estimates for Complete Genomics and Danaher.

Oppenheimer raised its share price target for Complete Genomics to $18.50, while Jefferies increased its 2011 EPS for Danaher to $2.70 and upped its share price target for the firm.

In a research note, Oppenheimer analyst David Ferreiro upped his price target from $13, and increased revenue estimates for full-year 2011 to $35.4 million from $33.2 million "to reflect a faster than expected ramp in [Complete Genomics'] service business." He lowered the expected loss per share to $1.88 from an earlier forecast of $1.95 and maintained an "Outperform" rating.

Ferreiro noted the recent disclosure by Complete Genomics CEO Clifford Reid that in the first quarter of 2011 the firm had shipped more than 600 genomes, above a previous guidance of 500 genomes and above the 350 genomes delivered in the fourth quarter. Ferreiro also said that the company has booked more than 1,400 genome orders in the first quarter, which "indicates steadily increasing demand for [the company's] whole genome sequencing service" and brings the total backlog to about 3,500, including orders from the National Cancer Institute.

His new estimate is for Complete Genomics to ship 4,200 genomes for the year, up from an earlier estimate of 3,950.

Oppenheimer initiated coverage on the Mountain View, Calif., firm in March.

In a separate note, Jefferies analyst Jon Wood raised his estimate for Danaher's EPS from $2.55 to $2.70 for 2011 and his 2012 estimate to $2.90 from $2.80. Both figures exclude expected contribution from the pending $6.8 billion Beckman Coulter acquisition.

Wood also raised the share price target to $62 from $60 and has a "Buy" rating on the firm.

He noted Danaher's recent first-quarter results, which showed an 11 percent increase in revenues year over year and a 10 percent organic growth rate for the quarter.

"Life Sciences & Diagnostics organic revenue growth of 9 percent (vs. our +5.5 percent) was particularly impressive" given a 3 percent decline in Japanese stimulus-related revenue from a year ago, Wood said. Carving out such effects, he estimated organic growth in its mass spectrometry business, AB Sciex, was greater than 10 percent, "an experience that will likely pace it in the upper performance echelon of its analytical instrumentation peers in 1Q11."

Danaher said during its earnings conference call last week that its purchase of Beckman Coulter is anticipated to close late in the second quarter. Wood said that completion of the deal will add $.10 to Danaher's 2011 EPS, and $.20 to 2012 EPS on a non-adjusted basis.

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