Jefferies Downgrades Qiagen To Hold

Jefferies is downgrading Qiagen QGEN to Hold but reports that it is still a core holding. “The stock's 15% P/E premium rating to peers is still below its historical 20% average, but we think now fairly reflects current lingering concerns of a sustained sub-10% organic growth and HPV testing market maturity,” Jefferies writes. “We forecast a brighter 2011E, possibly benefiting from US consumer spending given it has the most significant exposure to this geography. However, we await greater visibility on the longer-term potential growth drivers for Qiagen's molecular diagnostics franchise.” Qiagen closed Wednesday at $19.77.