Jefferies Raises PT On LMNX To $17

Jefferies has raised its price target on Luminex Corp. LMNX from $16 to $17 in light of 1Q11 results. Says Jefferies, in its report, “LMNX's 1Q11 EPS of $0.11 was $0.05 ahead of consensus on stronger revenue growth and profit trends. We are raising our 2011 EPS forecast to $0.30 (from $0.27). Our PT moves to $17 (from $16) on higher cash flow forecasts…LMNX's 1Q11 EPS of $0.11 eclipsed our $0.06 forecast on better than expected revenue trends that flowed at attractive incremental operating margins (45% vs. our 25%). We are raising our 2011 EPS forecast to $0.30 (from $0.27) to account for the 1Q11 upside, tempered somewhat by expectations for higher R&D outlays over the coming periods.” Jefferies maintains its Hold rating on the stock. LMNX closed yesterday at $19.85.