J.P.Morgan Reduces Price Target on Affymetrix (AFFX)

J.P.Morgan published a note this morning, where analysts reiterated its “neutral” rating on shares of Affymetrix (AFFX); and lowered its price target to $6.00 from $8.00. For 2Q, AFFX produced weak instrument sales due to delays in capital equipment purchasing in Europe, while consumables were also light on disruption from the Panomics integration and reduced GeneChip sales. On a more positive note, analysts mention, “Product gross margin (+57.7%, +220 bps y/y) showed improvement, and the company saw further bottom-line leverage from last year’s manufacturing consolidation and costcontrol initiatives, with total op ex down ~11% y/y.” JPM adds, “We are updating our 2010 estimates, which now call for revenues of $329.5mm, +1% vs. $338.1mm, +4% y/y, before, and a loss per share of $0.12 vs. ($0.09) before. For 3Q, we project revenues of $80mm, +2.3% y/y, and a net loss per share of $0.03. For 2011, we now project revenues of $350mm, +6% y/y, and $0.12 EPS.” Shares of AFFX are currently trading at $4.26.