July 29 (Reuters) - Shares of Life Technologies Corp (LIFE.O) rose 8 percent to a 52-week high on Wednesday, a day after the company reported strong quarterly results, which prompted S&P Equity Research to upgrade the stock to “strong buy”.
At least five other brokerages raised their price targets on the stock of the company, which makes tools and equipment used in genetic testing and stem cell research.
Shares of the company were up $3.29 at $46.20 in morning trade on Nasdaq, after touching a high of $46.48 earlier. As many as 5.5 million shares changed hands in intraday trading, more than twice the 50-day moving average volume of the stock.
Life Technologies on Tuesday reported a second-quarter profit that beat Wall Street estimates, helped by integration-related combinations and better pricing. [ID:nN28362514]
“Life’s organic growth in the quarter (7.5 percent) is the strongest reported to date in the space, reflective of the company’s economic insensitivity, resilient end markets, and strong product offerings,” Barclays analyst C. Anthony Butler wrote in a note to clients.
The company remains well positioned in rapidly growing, economically insensitive markets, the analyst said, adding that he expects the stock’s outperformance to continue.
S&P Equity Research, which previously rated the stock “buy”, said the company’s quarterly revenue was aided by swine flu-related instrument sales.
Five brokerages, including UBS and Deutsche Bank, raised their price targets on the stock, which has surged 26 percent over the past three months.
Brokerages Price Target
UBS $50 $44
Barclays $53 $49
Morgan Stanley $49 $47
Macquarie $51 $45
Deutsche Bank $49 $45 (Reporting by R. Manikandan in Bangalore; Editing by Deepak Kannan)