UPDATE: JP Morgan Maintains Neutral, Lowers Target to $32 on Mako Surgical

JP Morgan reiterates its Neutral rating on Mako Surgical MAKO and lowers its price target to $32 from $37 as systems sold in the third quarter missed expectations and fuel concerns related to HMA contract draw-down. JP Morgan comments, "Systems sold in 3Q11 fell one short of Street consensus at 11, fueling concerns that as Mako's 2011 HMA contract winds down, it will be a challenge for the company to meet system sales expectations. Current 2011 guidance for 44-48 systems implies 14-18 in the 4Q. We are trimming our own forecast modestly to the mid-point of the range, which at 16 systems brings the company to 46 for the year, including two OUS and at least 11 to HMA hospitals." MAKO closed at $25.43 per share on Monday.