Benchmark Increases Analogic Price Target to $60

In a report published by Benchmark, it increased its price target on Analogic Corporation ALOG from $52 to $60.

Benchmark said that Analogic reported a solid quarter with strength in medical, as expected. “Revenue was $117 million, up $15 million y/y, and $ 6 million better than consensus. Adj EPS was $0.53 and $0.07 better than consensus. We note that operating margin was lower than expected at 5.2% vs. our forecast of 7.3% and a lower tax rate contributed to approximately $0.08 in EPS during the quarter. Gross margin was 35%, down more than 200 bps y/y from product mix and cost associated with facility consolidation.”

Analogic closed yesterday at $54.50.