Bank of America Montgomery upgraded Affymetrix (AFFX) to buy.
Analyst Jim Reddoch says this is the second strong quarter in a row for the maker of GeneChip systems, giving more confidence that the glitches and obstacles of 2001 are in the past. He believes the 18% stock drop in past week was a buying opportunity and says obstacles in sentiment also are being overcome. He believes the company can focus on new products/applications. Reddoch has a $40 12-month price target, based on new $0.57 2004 EPS estimate. He notes investors are paying 60x-80x for two-years' earnings per share for peers.