Morgan Stanley Reiterates Equal-Weight on CR Bard
Morgan Stanley remains Equal-weight on CR Bard (NYSE: BCR) after the company looks to stabilize current performance organically, while relying on acquisitions for long-term growth.
Morgan Stanley notes, "After two quarters of sequential organic deceleration despite easing comps, Bard saw organic acceleration of nearly 100 bps, on a 150 bps more difficult comp. Following the stabilization trend, Bard's US revenues also held steady at 2% growth after falling from ~7% from 1Q10 through 1Q11. These results support a view that while utilization may not improve in 2012, evidence of stabilization is emerging. 2012 is likely a digestion year for Bard as they focus on acquisition integration and reversing the organic growth trajectory. We think the Gore suit remains the most interesting catalyst this year."
BCR closed at $92.52 a share yesterday.
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