Meridian Bioscience: Current Valuation Is Not Yet Compelling Enough For Growth Investors, Says William Blair


In a research report issued today, William Blair analyst Brian Weinstein maintained a Market Perform rating on Meridian Bioscience (NASDAQ:VIVO). No price target was provided.

Weinstein wrote, “With 2015 guidance that came in below expectations and the series of quarterly misses we have seen over the last year, it is clear that the widespread competitive pressures along with a lack of pipeline products large enough to alter the growth rate have combined to temper the overall corporate growth rate. Given management commentary about the increasing competitiveness and complexity of the market, it is unclear when the business will consistently return to what we view as steady-state performance for this type of model—namely, a midsingle-digit growth rate range on the top line, while delivering some leverage to the bottom line and paying a nice and steady dividend (that part investors can count on). Thus, we still believe the current valuation (about 22 times our fiscal 2015 earnings estimate) is not yet compelling enough for growth investors to come into this name. We would look for a reacceleration in illumigene or the addition of some interesting new products or technologies before recommending this name for growth stock investors.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Weinstein has a total average return of 28.6% and a 87.5% success rate. Weinstein has a average return when recommending VIVO, and is ranked #715 out of 3270 analysts.

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