Ahead Of The Bell: Analyst Upgrades Gen-Probe

NEW YORK (AP) — A Oppenheimer & Co. analyst upgraded shares of diagnostic test maker Gen-Probe Inc. Wednesday, citing the potential for future growth in the clinical diagnostics market and the company's pipeline of products.

Oppenheimer analyst Amit Hazan boosted his rating to "Outperform" from "Perform" and reaffirmed a $47 price target. He said shareholders should buy the stock because of expectations for blood screening growth are now well reflected in the shares and there are strong leading indicators for future clinical diagnostics growth. Also, the company has a solid pipeline of products and the stock has an attractive valuation.

"We realize sentiment won't change overnight, but patient investors should be nicely rewarded in Gen-Probe from these levels," he said in a note to investors.

The company's key devices are used to detect viruses including HIV, hepatitis C, and various infectious microorganisms. Devices also allow for blood collection centers to test donors.

Hazan said revenue in 2009 is now tracking head of Gen-Probe's best year for diagnostic device placements, and that is a strong indicator for volume growth.

Shares closed at $37.74 Tuesday.