J.P. Morgan Reiterates a Hold Rating on Qiagen N.V.

By Ryan Adsit

In a report released yesterday, Tycho Peterson from J.P. Morgan reiterated a Hold rating on Qiagen N.V. (NASDAQ: QGEN), with a price target of $27. The company’s shares opened today at $26.89, close to its 52-week high of $28.04.

Peterson said:

“Qiagen (QGEN) announced 3Q16 results in line with expectations, with +9% cc growth (+6% organic), led by +9% cc growth in consumables and +3% cc growth in instruments, with the MO BIO acquisition contributing 300 bps. The company left its 2016 growth outlook unchanged, calling for +6-7% cc growth, translating to adj. EPS of $1.08-1.10, which compares to the Street at $1.35B and $1.09, respectively. Notably, the company also announced a restructuring program that is expected to result in a $0.22-0.23 charge in 4Q (and another $0.03 in 2017) via site closures, consolidations, optimizing sales channels and spinning off certain activities. Looking ahead, QGEN also announced its preliminary outlook for 2017, calling for +6-7% cc growth and adj. EPS of $1.25-1.27 (in line with consensus on revenues and slightly above on EPS, ex restructuring). The company had also announced last quarter that it intends to return at least $300M to shareholders by the end of 2017, with $250M of this repurchase on track for completion by Jan 2017. Overall, while we acknowledge the solid quarter, we look for more consistency in results, along with additional clarity on the GeneReader ramp given ongoing ILMN litigation, including the number of placements/customers, annual pull through rates and customer generated data, before becoming more constructive. QGEN will host an analyst day in New York on 11/15, with data on GeneReader likely to be showcased at the AMP conference in Charlotte, NC (11/10-11/12). Reiterate Neutral and Dec.”

According to TipRanks.com, Peterson is a 5-star analyst with an average return of 11.1% and a 59.7% success rate. Peterson covers the Healthcare sector, focusing on stocks such as Dentsply International Inc., Albany Molecular Research, and Quintiles Transnational.

Currently, the analyst consensus on Qiagen N.V. is Moderate Buy and the average price target is $27.33, representing a 1.6% upside.

In a report released today, Merrill Lynch also upgraded the stock to Hold with a $26 price target.

The company has a one year high of $28.04 and a one year low of $19.94. Currently, Qiagen N.V. has an average volume of 981K.

QIAGEN NV manufactures and distributes sample and assay technology products for preanalytical sample preparations. Its products include instruments, consumables, and detection technologies. The company was founded by Detlev H. Riesner and Metin Colpan on April 29, 1996, and is headquartered in Venlo, Netherlands.