UPDATE: Jefferies Assumes Coverage on Luminex at Hold on Long-Term Caution

In a report published Friday, Jefferies analyst Brandon Couillard assumed coverage on Luminex (NASDAQ: LMNX) with a Hold rating, and raised the price target from $17.00 to $20.00.

In the report, Jefferies noted, “Cautious on long-term profitability goals. LMNX has successfully relied upon development and distribution agreements with >50 strategic partners to market the xMap technology and instrument platforms. Despite having nearly 10,000 installed instruments in the field, LMNX's ability to scale its operating infrastructure to improve ROIC has been limited. Although LMNX continues to leverage the market positions of its partners to expand its installed base, more evidence of incremental profit margin improvements is needed before we can gain confidence in its long-term profitability targets.”

Luminex closed on Thursday at $19.09.