Credit Suisse First Boston Corporation
Back to Search Results
CREDIT SUISSE FIRST BOSTON CORPORATION
Equity Research
Americas
Biotechnology
BUY
USD 40.95
LARGE CAP
Affymetrix (AFFX)
Lowers Financial Guidance. Reducing Price Target to $36.
Summary
Today, Affymetrix significantly reduced its 2Q01 guidance, citing
weaker than
expected GeneChip and "do-it-yourself" microarray instrument sales.
Slower sales of chips and instruments to large pharmaceutical
customers are
responsible for approximately 2/3 of this quarter's expected weakness.
AFFX
believes that 1) certain customers built up inventories around their
fiscal
year ends, 2) pharmaceutical customers in the midst of project
planning are
delaying orders, and 3) the mouse chip problems have been
compounded as some
of these customers remain in wait-and-see mode.
This quarter's remaining expected weakness is attributable to continued
lack
of demand for do-it-yourself spotted array instrumentation. AFFX
notes seeing
an acceleration in the trend of academic customers wanting
prefabricated
arrays, which could be beneficial for the company's core product lines.
While we are cautious about the next few quarters, we do remain
positive
regarding the company's long term outlook and the demand for AFFX's
microarrays. Our current revenue estimate for 2Q (ex-Perlagen) is
$45.0M,
down from $60.1M; for FY01 we expect rev. of $207M, representing
2.9% growth
over FY00. We expect revenues ex-Perlagen to grow by 30.9% in
2002 and 28.2%
in 2003. We are lowering our 2Q-4Q01 EPS estimates to $(0.10),
$(0.08) and $(0
.02) from $0.01, $0.07 and $0.15. Our new FY01 EPS estimate is
$(0.30), down
from $0.14; our new FY02 EPS estimate is $0.23, down from $0.64;
and our FY03
EPS estimate is $0.72 from $1.05. Our lowered price target of $36 is
based on a
multiple of 50X FY03 EPS.
Price Target Mkt.Value 52-Week
6/11/011 (12mo.) Div. Yield (MM) Price Range
$40.95 $36 NA None $2,330 $103-$23
Annual Prev. Abs. Rel.
EPS EPS P/E P/E
12/02E $0.23 $0.64 186.1X
12/01E $(0.30) $0.14 NA
12/00A $(0.24) NA
March June Sept. Dec. FY End
2001E $(0.11)A $($0.10) $(0.08) $(0.02) Dec. 31
2000A $(0.07) $(0.11) $0.00 $(0.06)
Total Debt (3/01) $383 mil.
Book Value/Share (3/01) $2.41
Debt/Total Capital (3/01) 74%
Common Shares 56.9mil.
Est. 5-Yr. EPS Growth NM
Est. 5-Yr. Div. Growth NM
1On 6/11/01 DJIA closed at 10922.09 and S&P 500 at 1254.39
Affymetrix, a genomics company, manufactures tools (DNA
microarrays) that
enable the large-scale analysis of the human genome. Affymetrix's
novel
products are used widely throughout the pharmaceutical and
biotechnology
industries, and it currently dominates the DNA microarray market.
N.B.: CREDIT SUISSE FIRST BOSTON CORPORATION may have, within
the last three
years, served as a manager or co-manager of a public offering of
securities for
or makes a primary market in issues of any or all of the companies
mentioned.
CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST
BOSTON CORPORATION
CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST
BOSTON CORPORATION
Copyright © CREDIT SUISSE FIRST BOSTON, and its subsidiaries and
affiliates,
2001. All rights reserved.
CSFB may, to the extent permitted by law, participate or invest in
financing
transactions with the issuer(s) of the securities referred to in this
report,
perform services for or solicit business from such issuers, and/or have
a
position or effect transactions in the securities or options thereon. In
addition, it may make markets in the securities mentioned in the
material
presented in this report. PLEASE REFER TO TICKER CSFBDISC FOR
IMPORTANT LEGAL
DISCLOSURES. |
