Medical products firm C.R. Bard (BCR) currently warrants a Hold rating from Zacks senior medical devices and supplies analyst Greg Aurand, CFA, though the analyst has raised his estimate on the company's shares. Here's why:
We are revising our estimates higher on better top-line, particularly in oncology. Despite new product flow throughout 2007, we believe the company will find it increasingly difficult to generate continued operational improvement to help drive EPS [earnings per share], and we have adjusted our gross margin lower. Our EPS estimates increase, however, on the improved top-line and an adjusted lower FAS 123R expense outlook.
Our target moves up to $90.00, but our rating remains a Hold. The stock currently trades at roughly 20x our increased 2008 expected EPS of $4.36. We believe the company should trade in-line with the comparables 1.6x 2008 P/E/G [price-to-earnings growth].
On June 13, 2007, C. R. Bard, Inc increased the quarterly dividend to $0.15 per share on Bard's common stock, a 7% increase. The dividend is payable on August 3, 2007 to shareholders of record at the close of business on July 23, 2007. This will be the 36th consecutive calendar year in which Bard has increased its annual dividend payout to shareholders.
Read the analyst report on BCR
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