Biotech nuts and bolts

3:30

Millipore (MIL) was downgraded from Buy to Neutral at Merrill Lynch. MIL's stock is up 14.5% over 6 weeks and is now within 5% of the previous price objective of $78. Near-term outlook is now limited, however, fundamental outlook for the company has not changed.

Buy - Price 71.15 on Jan. 15
by UBS Securities

Millipore [develops] new therapeutic drugs, vaccines and detection tools based on...filtration, chromatography, cell-culture supplements, antibodies and cell lines. The Bioprocess division enable[s] commercial production of bioengineered and pharmaceutical substances...Following impressive 12% [organic] growth in first-half '07, Bioprocess slowed in 2H07 due to weakness in order patterns from several biotech customers...With a leading position in bioproduction, a more diversified portfolio, and (despite the lumps) good industry fundamentals, we continue to believe in MIL's long-term outlook...Our new 87 target [was 86] is about 19 times our new 2009 EPS estimate of $4.47. Market-cap: $3.9 billion.

"Laboratory-equipment maker Millipore (MIL) likewise is well-positioned technically. A long-term chart shows the stock pausing as it prepares to attempt a breakout to new highs."