UPDATE: Jefferies Assumes Coverage on OraSure Technologies at Buy on Weaker Demand Trend Concerns

In a report published Friday, Jefferies analyst Brandon Couillard assumed coverage on OraSure Technologies (NASDAQ: OSUR) with a Buy rating, but lowered the price target from $12.00 to $8.00.

In the report, Jefferies noted, “Concerns around weaker demand trends in OSUR's legacy product franchises have contributed to precipitous multiple compression, which we view as overdone. Following a better 1Q13 experience, evidence of incremental base business stability should work to rekindle investor enthusiasm for its intermediate-term growth opportunities. With OSUR's new OTC HIV & rapid HCV tests still in their infancy, we assume coverage at Buy / $8 target.”

OraSure Technologies closed on Thursday at $4.47.