Cepheid (CPHD) Price Target Boosted after Positive Earnings Report

After reporting better than expected quarterly results and outlook, Cepheid shares soared about 22 percent on Friday, surpassing estimates on both counts.

Most of this is the result of increasing sales its GeneXpert DNA testing system. Profits in the second quarter grew to $0.03, beating analysts expectations of a loss of $0.02.

Cepheid (NASDAQ:CPHD) had its price target raised by Oppenheimer from $33.00 to $38.00. They have an “Outperform” rating on the company.

Jefferies (NYSE:JEF) raised its price target on Cepheid to $37.00. They have a “Buy” rating on the company.

Cepheid also had its price target increased by UBS AG (NYSE:UBS) from $32.00 to $35.00. They have a “Neutral” rating on the company.

Piper Jaffray (NYSE:PJC) raised its price target on Cepheid to $39.00.

Cepheid closed Friday at $40.77, gaining $9.14, or 28.90 percent.

Cepheid (NASDAQ:CPHD) Growing on In-House MDX Testing Trend

Hospital lab trends are favoring Cepheid (NASDAQ:CPHD), as they are increasingly showing interest in bringing MDx testing in-house.

Canaccord says, "We reiterate our BUY on Cepheid following a strong quarter against very challenging comparisons (30% revenue growth in Q4/09). The results show that hospital labs are displaying interest in bringing MDx testing in-house with CPHD meeting their needs...Cepheid provided revenue guidance of $245M-$255M, which compares favorably to our previous estimate of $246M. GAAP EPS guidance calls for ($0.01) to $0.04. As a result we are raising our revenue estimate to $250M and lowering our EPS estimate to $0.03 from $0.17."

Canaccord Genuity maintains a 'Buy' rating on Cepheid (CPHD), which closed Friday at $23.91, dropping $0.27, or 1.12 percent. Canaccord boosted their price target on Cephid from $27 to $30.

Cepheid's (NASDAQ:CPHD) Adding Jobs a Positive Sign

With fundamentals solidly in place and adding more jobs to the manufacturing graveyard shift, Cepheid's (NASDAQ:CPHD) momentum appears to be slowly growing.

Wedbush noted, "Strong hiring trend consistent with strong fundamentals; New graveyard manufacturing shift postings, a positive sign in our view...We are slightly more encouraged by the recent manufacturing job postings and continued VA momentum of late, plus the recent WHO endorsement of the company's TB test, which helps to reduce near-term guidance risk. We are remaining NEUTRAL until we get more comfortable with the 2011 instrument placement opportunity, TB rollout, and potential upside from C.diff."

Wedbush maintains a "Neutral" on Cepheid, which closed Friday at $22.75, down $0.43, or 1.86 percent Wedbush has a price target of $23 on Cepheid.

Cepheid (NASDAQ:CPHD) Strongly Positioned for 2011

Saying they're targeting the right trends heading into 2011, Cepheid (NASDAQ:CPHD) is positioned to take advantage going forward, according to Canaccord Genuity.

"We reiterate our rating on CPHD as it addresses the key trends for hospital labs, which includes bringing molecular testing in-house and consolidating existing molecular testing platforms...CPHD well positioned for 2011. 1) New tests (CT/GC, Flu) slated for launch; 2) Large, leverageable installed base of >1,700 instruments; 3) GM expansion; and 4) Profitability," said Canaccord.

Canaccord Genuity maintains a "Buy" rating on Cepheid, which closed Wednesday at $23.46, gaining $0.21, or 0.90 percent. Canaccord has a price target of $27 on them.

Cepheid (NASDAQ:CPHD) Increases Lower End Guidance

During their most recent quarterly report, Cepheid (NASDAQ:CPHD) said they're increasing the lower end of their full year guidance going forward. .

GARP Research commented, "Shares of Cepheid jumped after it reported 2Q10 results. Total revenue grew 21% y/y to $49.6 million, driven by a 41% jump in the clinical segment. This was offset by an expected 35% y/y decline for the Biothreat business, and modest single-digit gains for the Industrial segment...Management raised the lower end of its full year guidance by $5 million to $200-205 million. It considered a modest increase in the top end, but maintained the current level given continued uncertainty in Europe where instrument placements fell 5% y/y during 2Q."

GARP Research maintains a "Buy" on Cepheid, which closed Monday at $21.80, up by $0.50, or 2.37 percent. GARP has a price target of $17 on them.