C.R. Bard Devices to Outperform

Tags: bcr
17 Oct 2:23am
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C.R. Bard (BCR) operates in vascular, urology, oncology, and surgical specialty markets. These end-markets should remain insulated from the current economic turmoil. Many of the company's products are used in interventional medicine - life-saving surgical procedures. The company's vascular products include percutaneous transluminal angioplasty catheters, guidewires, introducers and accessories, peripheral stents, stent grafts, vena cava filters, and biopsy devices.

We look for the company to finish in the upper end of their guidance. Future quarters will be met with a headwind from foreign exchange. However, with less than a third of sales outside of the United States, the impact will be less than for BCR's competitors.

The stock currently trades at roughly 17.3x our 2008 expected EPS of $4.40. We believe the company should trade in-line with the comparables and slightly above the industry mean. We remain at a P/E/G valuation of 1.7x 2008.  With this valuation, our recommendation increases from Hold to Buy.

Read the full analyst report on BCR



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