Jefferies & Co. Reiterates Hold on Bruker Corp. (BRKR)

Jefferies & Co. is out with a research report this morning, where it reiterates its Hold rating on Bruker Corp. BRKR; it has a $15.00 price target on the stock. The Jefferies analysts said that they are raising estimates on the name with 2010 EPS at $0.60 from $0.57, following BRKR's better-than-expected Q2 operating trends. Their 2011 EPS forecast of $0.75 and price target of $15 are unchanged. The analysts noted that the company experienced double-digit growth at each of its four Scientific Instruments (+18%) operating units and continued momentum at its emerging BEST (+41%) division. The company also showed evidence of accelerating U.S. stimulus-related order flows. As for valuation, they said, “Shares of BRKR currently imply an enterprise value of 10.2 times our revised next-12-month EBITDA forecast, which represents a 15% discount to historical levels (10% premium to peers vs. a historical average premium of 15%). Further evidence of a stable EU gov't life science-related research budget funding environment in 2011 would offer adequate justification to revisit our Neutral rating.”