Jefferies Remains Sidelined After Meeting with C.R. Bard Inc. (BCR)
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Jefferies reiterated a Hold rating and $237.00 price target on C.R. Bard, Inc. (NYSE: BCR) after visiting with management. Overall trends have not shown any evidence suggesting a significant increase in underlying procedure volumes that could account for the recent surge in growth at Bard. On the profitability side, GMs look to increase as mix is more than offsetting any price pressure. Also, Gore royalties are now ranging at $35- $40mn per quarter, which amounts to approximately $1.20 in EPS contribution.
Analyst Raj Denhoy commented, "We visited BCR at their NJ campus. Key takes: 1) New products and category dominance, not volume increases, driving results; 2) Lutonix well positioned despite competition; 3) PICCs a long tail opportunity, particularly in EMs; 4) Capital allocation focused on minimizing Gore sunset; 5) Growth outlook stable with upside to margins. The Bard formula continues to deliver above peer results, which seems poised to continue into 2017."
Shares of C.R. Bard, Inc. closed at $229.91 yesterday.
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