UPDATE: Jefferies Assumes Coverage on Cepheid, Downgrades to Hold on Valuation

In a report published Friday, Jefferies analyst Brandon Couillard assumed coverage on Cepheid (NASDAQ: CPHD), downgraded the rating from Buy to Hold, but reiterated the $38.00 price target.

In the report, Jefferies noted, “CPHD is well-positioned to realize significant margin expansion over the coming years as it leverages investments in its R&D pipeline, launches new high-margined tests and captures greater manufacturing efficiencies. However, present valuations (+20% vs. historical avg) already appear to reflect bullish growth expectations, in our view. Assuming coverage at Hold / $38 target.”

Cepheid closed on Thursday at $36.62.