Blood-testing product developer Immucor, Inc. (BLUD) has recently been upgraded to a Buy as a pull-back in the stock helped its valuation become more attractive. Zacks senior medical devices industry analyst Tom Park had these comments in his latest report on the company:
'BLUD reported Q2 EPS last week that were in-line with our estimate on in-line revenue. We lowered our FY08 & FY09 revenue estimates and lowered our FY08 EPS estimate. However, our FY08 estimates still exceed guidance that was reiterated.
'The strong earnings growth has been driven by double-digit sales growth, gross margin expansion and operating cost control. Although under pressure from the Echo launch, gross margins are expected to regain momentum next fiscal year.
'At its current price of $30.16, BLUD is trading at roughly 25x our fiscal 2009 earnings estimate of $1.19 per share, which is at a discount to the group multiple of roughly 34x. Based on valuation, we raised our recommendation to a Buy. Our price target is based on roughly 34x FY09 EPS estimate. We believe the stock is fairly valued at roughly 34x fiscal 2009 EPS estimate, about 1.3x our estimated long-term growth rate.'
Read the full analyst report on BLUD.
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