Nigel,
This seems to be the approximate growth rate assigned to leading trickle companies these days. Viz:
>>Life Science Reagents - Deutsche Banc Alex. Brown's Jim Patricelli Launches Research Coverage of the Sector
NEW YORK, Mar 16, 2001 /PRNewswire via COMTEX/ -- Deutsche Banc Alex. Brown analyst Jim Patricelli today launched coverage of the Life Science Reagent sector with the initiation of Invitrogen Corporation (Nasdaq: IVGN chart, msgs)($63.00) with a STRONG BUY rating and TECHNE Corporation (Nasdaq: TECH chart, msgs)($25.00) with an investment rating of BUY. Invitrogen is the largest provider of molecular biology reagents and TECHNE is a worldwide leader in cytokine research reagents.
According to Patricelli, the life science reagent market represents a unique investment opportunity in the future of drug discovery. "We expect life science reagent companies to benefit directly from the recent breakthrough in genomics and the compelling need for new pharmaceutical products," said Patricelli. "This should positively impact spending patterns within the life sciences realm providing a high growth opportunity for the reagent tools providers."
Patricelli's positive opinion on the shares of Invitrogen and TECHNE is based on his belief that both companies are clear leaders in their market segment, have seasoned management teams, and share the same attractive growth prospects. "We expect each of these companies to continue to experience positive fundamentals, generating sustainable revenue growth equal to or greater than the overall market rate of 15% for the next several years," said Patricelli. "In addition, each of these companies is currently experiencing margin expansion."
Patricelli's 12-month price target on shares of Invitrogen Corporation is $86.00, or 45x his CY02 EPS estimate of $1.91. His 12-month price target on shares of TECHNE Corporation is $30.00, or 31x his CY02 EPS estimate of $0.97.
Deutsche Banc Alex. Brown represents the Investment Banking activities of Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd. (Canada). Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are subsidiaries of Deutsche Bank AG. With over EUR995 billion in assets as of September 30, 2000 and approximately 95,000 employees, Deutsche Bank offers its clients unparalleled financial services throughout the world. It ranks among the leaders in asset management, capital markets, corporate finance, custody, cash management and private banking. Deutsche Bank is divided into five major business units: Global Corporates and Institutions, Global Technology and Services, Asset Management, Corporates and Real Estates and Private and Retail Banking.
Deutsche Banc Alex. Brown Inc. maintains a net primary market in the common stock of TECHNE Corporation and Invitrogen Corporation.
TECHNE Corporation and Invitrogen Corporation stocks are optionable.
There is a convertible issue outstanding on Invitrogen Corporation.<<
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This hasn't helped IVGN at all; apparently expectations were higher than 15% and funds are bailing, as we know.
I am pleased to see that the life sciences section of MIL is going to be the parent, in contrast to APBiotech, expected baby of Amersham/Pharmacia. I'm with Wilder on the concept that spinoffs benefit the parents. It'll be interesting to see how the deal goes.
Trickle notes that some companies that had resisted their lock-up expirations are resisting no more. DPII is a case in point, and Trickle may go hunting tomorrow, as cheap as DPII is. Outside of trickle, AMEV is another I've been watching, along with ITMN. Also in real life, getting ready to buy a little INCY.
Cheers, Tuck |
