CS First Boston Cuts Applera-Celera to 'Hold'

Analyst Meirav Chovav says the drug maker's restructuring will reduce the current value of the company

Credit Suisse First Boston downgraded Applera-Celera Genomics (CRA ) to hold from buy.

Analyst Meirav Chovav says the announcement of major restructuring of Applera's online business and notes the company will receive a low to mid single digit royalty stream on new revenues generated by Knowledge Business after July 1. The arrangement transforms Applera from a current revenue generator into a very early stage drug discovery company, and that doing so reduces the current value of the company. Chovav sees a $1.77 fiscal 2002 (June) loss, and a $2.00 fiscal 2003 loss. He cut the $25 target to $20.

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