NEW YORK (GenomeWeb News) – Analysts today upped their price targets on Affymetrix's stock, after the firm posted revenues and net income that surpassed analysts' consensus estimate.
After the close of the market yesterday, Affy reported total second-quarter revenue of $81.6 million, compared to $86.9 million in the comparable period of 2008. Though the revenues declined year over year, the results easily beat analysts' consensus estimates on both the top and bottom lines.
Following the release of its results, Affy's shares soared on the Nasdaq, and at least a couple of analysts raised their price targets on the firm's shares. However, they remain cautious about the firm's turnaround.
"The apparent stabilization of Affymetrix's business continues the trend we saw last quarter, though we still remain cautious on the company's turnaround," wrote Thomas Weisel Partners analyst Peter Lawson in a research note. "While we continue to see improvement in execution, we are waiting to see more consistency in their operations and clear signs of a turnaround before becoming more constructive."
Lawson increased his third-quarter revenues estimates for the firm to $79 million from $75 million. He also increased his 12-month price target on the firm's shares to $6 from $5.
Likewise, Isaac Ro, an analyst with Leerink Swann, wrote, "Exeecution is improving but we remain cautious on the long-term viability of new products before becoming more constructive on Affymetrix shares but raise our valuation to $7." Ro previously had a price target of $5 on the stock.
In mid-afternoon trade on the Nasdaq, Affy's shares were up 36 percent at $8.02.