Wedbush Reports Alere Invests In Company Developing Prenatal Diagnostics

According to Wedbush, Alere (NYSE: ALR) has made an investment in a company developing nucleic acid-based non-invasive prenatal diagnostics.

Wedbush reported that it's unclear which company Alere invested in or the nature of the investment. “Maintaining OUTPERFORM. We remain encouraged by the strengthening domestic and EU landscapes, solid 4Q10 topline, and significant 1Q11 flu activity. We are still not anticipating near term GM improvement. While the new product story is at least two years from meaningful revenue in our view, we are encouraged by the recent strength across core professional diagnostics franchises. We believe ALR still remains a stock for patient investors. As we investigate the Epochal and CD4 (HIV viral load monitor) opportunity, we may become more bullish. Our $44 price target is based on our 2011E estimates and assume a PE multiple of 17.5x. ALR still trades at a discount to the group (15.7x [includes stock comp]) vs. the peer group median of 22x on a 2011E PE multiple basis.”

Alere closed yesterday at $39.48.