Deutsche Bank Upgrades C. R. Bard (CR) to Buy

November 4, 2009 8:16 AM EST

Deutsche Bank upgrades C. R. Bard (NYSE: CR) to Buy. Price target increased from $78 to $88.

Deutsche analyst says, "After digesting this past quarter and taking a good look at underlying growth we are upgrading shares of CR Bard to a Buy. When we initiated in July, we cited revenue growth deceleration, urology uncertainties, hernia share losses, and a premium valuation as reasons to stay away. Those headwinds have subsided and with a significant FX tailwind into next year, we believe underlying growth trends will improve. We favor the current in-line multiple of Bard, and believe the stock is poised to move higher as new product launches drive operational growth."

"While increased competition has impacted operational growth rates in the Urology and Oncology businesses, we believe trends should improve in '10 as these challenges are better understood now by investors. The launch of the PICC..Our PT is based on 14x our forward EPS estimate. Given Bard’s better historical growth profile and market leading positions offset by near-term challenges, we are using an in-line market multiple (hospital supply comp group) as the basis for our valuation. Downside risks include increasing competition in the hernia, oncology, and urology markets, slower than market growth rates, pricing pressures, and healthcare reform."

To see more analyst ratings on CR Click Here.

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