J.P. Morgan Raises PT To $17 On QDEL

J.P. Morgan, in light of the company's mixed quarter, has slightly raised its price target on Quidel QDEL from $16 to $17 but is maintaining its Neutral rating on the stock. In the report, J.P. Morgan writes, “2Q11 revenues came in slightly below consensus, although above our estimates, while EPS beat both on improved gross margins and lower R&D spending relative to our estimate. The former point is of particular note, and was, in our view, the major highlight of the quarter: a +390 bp y/y improvement in gross margin, driven by manufacturing efficiencies (particularly, at the DHI facility in Ohio). With a permanent structural improvement in operations occurring more rapidly than we had anticipated, and continued pipeline progress, we are slightly increasing our estimates and DCF-derived December 2011 price target from $16 to $17.” QDEL closed yesterday at $14.32.