Piper Jaffray Remains Underweight on Luminex Shares

In a recent research report, Piper Jaffray explained why it will maintain its Underweight rating on Luminex Corporation LMNX after the company saw 16.2% yoy revenue growth. “Management anticipates little 2012 impact from the initiatives underway to curb code stacking for molecular diagnostic assays, with CF (typically outpatient) the most exposed to these initiatives. Given Luminex' portfolio, we see little risk of non-payment, but are unsure of eventual payment levels for previously code stacked assays. F2012 guidance calls for 11.2%-16.6% revenue growth to $205M-$215M, ~in-line with prior Street consensus expectations ($211.1M), although operating expenses are higher than our prior expectations. We remain Underweight LMNX shares as we believe code stacking initiatives could translate into pricing pressure in coming quarters,” Piper Jaffray said in the report. Piper Jaffray maintains its $19 PT on Luminex, which closed yesterday at $20.92.