Deutsche Bank Tweaks Estimates on Mindray Medical (MR), Compelling Growth Story
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Price: $5.36 --0%
Rating Summary:
6 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank is reiterating its Buy rating and $31 price target on shares of Mindray Medical (NYSE: MR) while encouraging investors that now is the time to buy.
The firm believes that a macro trend will benefit the company over the next one to two years, China’s central government will allocate RMB2.5m to each of the 2,130 county hospitals and Deutsche believes that they will allocate even more in 2012.
During the recent meeting with management, the firm notes that MR is well positioned in China to capitalize on the aforementioned macro trend with its extensive product offering, attractive price/quality profile, and a more integrated
sales force; it is also addressing domestic competition by adding advanced features into low-end products without price increases; the company is growing internationally with a plan to add 2-3 offices; in addition, while expecting the Middle East and North Africa situation to ease; and new products are on track to be released with 7 to 8 new products just in 2011.
The firm is raising its expected growth from China to 17 percent from 13 percent and is also raising its FY11 EPS estimate to $1.62 from $1.60.
An analyst at Deutsche comments, "we think it is unlikely that the MENA situation will last for the whole of 2011, as such pent up demand will be released eventually, while China’s strength is likely to continue into 2012. With another 1-2 quarters of delivery, investor concerns over the fundamental turnaround are likely to ease."
For more ratings news on Mindray Medical click here and for the rating history of Mindray Medical click here.
Shares of Mindray Medical closed at $27.27 yesterday.
The firm believes that a macro trend will benefit the company over the next one to two years, China’s central government will allocate RMB2.5m to each of the 2,130 county hospitals and Deutsche believes that they will allocate even more in 2012.
During the recent meeting with management, the firm notes that MR is well positioned in China to capitalize on the aforementioned macro trend with its extensive product offering, attractive price/quality profile, and a more integrated
sales force; it is also addressing domestic competition by adding advanced features into low-end products without price increases; the company is growing internationally with a plan to add 2-3 offices; in addition, while expecting the Middle East and North Africa situation to ease; and new products are on track to be released with 7 to 8 new products just in 2011.
The firm is raising its expected growth from China to 17 percent from 13 percent and is also raising its FY11 EPS estimate to $1.62 from $1.60.
An analyst at Deutsche comments, "we think it is unlikely that the MENA situation will last for the whole of 2011, as such pent up demand will be released eventually, while China’s strength is likely to continue into 2012. With another 1-2 quarters of delivery, investor concerns over the fundamental turnaround are likely to ease."
For more ratings news on Mindray Medical click here and for the rating history of Mindray Medical click here.
Shares of Mindray Medical closed at $27.27 yesterday.
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