Barclays Maintains an 'Overweight' on PSS World Medical (PSSI); Our FY12 EPS down again into FQ2: Bigger Elder Care Reimbur Issues to Impact?

Barclays maintains an 'Overweight' on PSS World Medical (NASDAQ: PSSI) price target of $29.00.

Barclays analyst says, "We are again moderating our FY12 EPS estimate coming into Q2 results tomorrow. Our FY12 estimate goes from $1.46 to $1.40 and our FY13 goes from $1.72 to $1.65. This comes after our moderation last month (Fall Update: Estimates Down with No Elder Care Improvement, Though Doc Better, dated September 8, 2011). We are not changing our quarterly expectation of EPS of $0.37. The catalyst? While we remain constructive on the company's physician supply business, estimating 10%+ profit growth this year and next, we are a bit more wary of the company's Elder Care business given the macro environment. That view is driven by more notable recent changes in payment visibility to customers in this segment. Given the CMS announcement of rates that reduced Medicare reimbursement by 11% on average to skilled nursing facilities beginning earlier this month, combined with bigger changes in payment suggested for home health agencies, we believe our prior estimates could be too optimistic."

For more ratings news on PSS World Medical click here and for the rating history of PSS World Medical click here.

Shares of PSS World Medical closed at $21.05 yesterday.

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