Merrill Lynch keeps PerkinElmer's buy rating

PerkinElmer Inc. was maintained by Merrill Lynch & Co. analyst Darryl Pardi at a buy rating with a $24 price objective on news that the biopharmaceutical company plans to divest its aerospace, semiconductor and fluid science businesses. Merrill Lynch said it believes the Wellesley, Mass.-based maker of scientific instruments' divestitures will improve organic growth and give it more flexibility to repay debt, make acquisitions and buy stock. Merrill Lynch said it continues to forecast earnings per share of $1.12 for 2005 because the timing of the sale in the fourth quarter is unclear. Merrill Lynch is reducing by $0.08 its forecast for 2006 earnings per share to $1.27, assuming PerkinElmer uses proceeds of the divestiture to pay down debt. Shares were up $1.44, or 6.98%, at $22.07 on volume of 2,620,100 shares versus the three-month running average of 644,583.

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