Oppenheimer Outperform on Mindray Medical
Oppenheimer & Co. is out with a research report on Mindray Medical Int'l Ltd. (NYSE: MR) and it has an Outperform rating and a $32 price target on shares.
In a note to clients, Oppenheimer & Co. writes, "MR's 3Q11 revenue growth of 29.8% beat our/Street estimates of 16.7%/18.7% by a wide margin, supported by strong global demand for its products. China sales grew 35.4%, much faster than our 17.6% expectation. Exports expanded 26%, largely driven by emerging markets, topped our estimate/ShenZhen growth rates of 16%/20%. Gross margin declined 405bps yoy, more than we estimated. Non-GAAP EPS was just in line due to lower margins. SG&A/R&D expenses have stabilized. MR raised its 2011 revenue guidance from >16% to >20% while keeping its non-GAAP net income growth rate at >10%. We raise our FY12 revenue/non-GAAP EPS estimates to $1,020.5M/$1.79. Maintain Outperform."
Shares of MR closed at $28.06 yesterday.
