Jefferies Comments on Sequenom (SQNM)

Jefferies & Company released a report on Sequenom SQNM earlier. In the report, Jefferies raised revenue forecasts for the company, but did not alter their price target. Jefferies states, “SQNM's 1Q11 revenue of $13.5M was +6% above consensus. We are raising our 2011 and 2012 revenue forecasts to $57M (from $54M) and $77.5M (from $74M), respectively. Our $7 price target is unchanged. SQNM's 1Q11 revenue eclipsed our $12.1M forecast, reflecting better than expected MassArray platform and consumable revenue. SQNM indicated it recently completed its T21 “Womens and infants” LDT validation study nearly two months ahead of schedule. SQNM burned $12M of cash in 1Q11, slightly less than our $14M forecast.” Jefferies maintains a Hold rating on SQNM and a price target of $7.00. The stock closed yesterday at $6.68, down $0.51.