Piper Jaffray Upgrades Pacific Biosciences of California (PACB) to Overweight

Piper Jaffray upgraded Pacific Biosciences of California (NASDAQ: PACB) from Neutral to Overweight with a price target of $9.00 (from $7.00).

Analyst William R. Quirk commented, "Pacific Biosciences reported 3Q15 revenue of $13.9M, below our $16.4M estimate and the Street's $15.8M expectations. Ongoing EPS of ($0.28) was in line with our estimate and below consensus of ($0.27). During the quarter, we estimate PacBio validated ~4 RS II instruments, but also placed several additional systems under lease arrangements. Consumable usage of an annualized pull-through (~$151K PJC estimate) was above management's expectations (~$120K). Management had a strong showing at ASHG with solid traffic at their booth, which is turning into early order flow for Sequel and they raised their FY15 revenue growth guidance to 50%-55%, or $90.9M-$93.9M (was >40%; $84.8M). On the heels of the launch and the early interest, we are raising our rating from Neutral to Overweight and increasing our price target to $9 (was $7) based on ~7x FY17E EV/Rev."

For an analyst ratings summary and ratings history on Pacific Biosciences of California click here. For more ratings news on Pacific Biosciences of California click here.

Shares of Pacific Biosciences of California closed at $7.13 yesterday.

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