Wells Fargo Starts Patterson Companies (PDCO) at Market Perform

Wells Fargo initiates coverage on Patterson Companies (NASDAQ: PDCO) stock with a Market Perform rating and valuation range of $40.00 to $43.00.

Analyst Jamie Stockton comments, "Patterson is a distributor of supplies, equipment and value-added services to the Dental, Veterinary and Rehabilitation markets primarily in the United States. An estimated 66% of the company’s business is Dental, 21% Veterinary and 13% Rehabilitation. While organic growth should improve in FY2014 due to better trends in Veterinary and Rehabilitation, investments in a new CRM platform are holding back EPS growth. We believe the company should see growth more in line with its long term targets by FY2016 as the Rehabilitation business reaches full steam. Patterson also has strong cash flow, but we are currently on the sideline given muted EPS growth."

For an analyst ratings summary and ratings history on Patterson Companies click here. For more ratings news on Patterson Companies click here.

Shares of Patterson Companies closed at $38.67 yesterday.

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