Sigma-Aldrich Corp Downgraded to “Underperform” at Bank of America (SIAL)

Sigma-Aldrich Corp (NASDAQ: SIAL) was downgraded by equities researchers at Bank of America from a “neutral” rating to an “underperform” rating in a report issued on Monday.

The analysts wrote, “While we are positive on SIAL’s diverse product portfolio, relative business stability, and emerging market exposure, due to a combination of tough end markets and what we believe are execution issues, we think that the company’s efforts to revamp organic growth may take longer than expected. In addition, if organic growth lags, then it may more difficult for SIAL to realize margin expansion. As a result, given the current valuation, we think that SIAL shares are likely to lag life sciences peers and that the multiple is more likely to contract than expand.”

Shares of Sigma-Aldrich Corp (NASDAQ: SIAL) opened at 77.45 on Monday. Sigma-Aldrich Corp has a one year low of $66.52 and a one year high of $79.32. The stock’s 50-day moving average is currently $77.53. The company has a market cap of $9.328 billion and a P/E ratio of 20.54.

Sigma-Aldrich Corp (NASDAQ: SIAL) last posted its quarterly earnings results on Thursday, February 7th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.01. The company had revenue of $655.00 million for the quarter, compared to the consensus estimate of $659.55 million. During the same quarter in the previous year, the company posted $0.91 earnings per share. The company’s revenue for the quarter was up 7.4% on a year-over-year basis. Sigma-Aldrich Corp has set its FY13 guidance at $4.10-4.20 EPS. On average, analysts predict that Sigma-Aldrich Corp will post $4.14 earnings per share for the current fiscal year.

Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Sigma-Aldrich Corp in a research note to investors on Monday, February 11th. They now have a $82.00 price target on the stock. Separately, analysts at UBS AG downgraded shares of Sigma-Aldrich Corp from a “neutral” rating to a “sell” rating in a research note to investors on Monday, February 11th. They now have a $70.00 price target on the stock, down previously from $76.00. They noted that the move was a valuation call. Finally, analysts at Mizuho raised their price target on shares of Sigma-Aldrich Corp from $68.00 to $70.00 in a research note to investors on Friday, February 8th. They now have a “neutral” rating on the stock.

Three analysts have rated the stock with a sell rating, eight have issued a hold rating and two have assigned a buy rating to the stock. Sigma-Aldrich Corp currently has an average rating of “Hold” and a consensus price target of $77.88.

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes the range of chemicals, biochemicals and equipment available globally and also provides global biopharmaceutical testing services.

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