Jefferies Maintains a 'Buy' on Becton Dickinson (BDX); Early View: Surprisingly Strong 2Q11 Tempered By Core Revenue Outlook Caution

Jefferies maintains a 'Buy' on Becton Dickinson (NYSE: BDX), PT increased from $96 to $98.

Jefferies analyst says, "Despite posting what we would characterize as its best quarterly core revenue experience in quite some time, shares of BDX may ease at the open on the modestly lower core revenue growth outlook in 2H11, which it obscurely attributed to tempered expectations in the EU, all but guaranteeing an unnerving level of focus on such a phenomenon on the conference call this morning. However, with current levels implying an EV of only 8.2 times our CY11 EBITDA forecast, we continue to view present valuations as highly accommodating relative to its superior ROIC profile, particularly in the context of improving cosmetics in 2H11. Oh how we yearn for a crystal clean BDX print of old...We are raising our FY11 EPS forecast to $5.60 (from $5.50). Our PT moves to $98 on higher cash flow forecasts."

For more ratings news on Becton Dickinson click here and for the rating history of Becton Dickinson click here.

Shares of Becton Dickinson closed at $84.89 yesterday.

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