UPDATE: Bank of America Raises PO to Mindray Medical International; Higher Sales

Bank of America increases its price objective to $32 on Neutral-rated Mindray Medical International

as sales increase along with expenses. Bank of America notes, "Mindray posted robust sales growth of 21%, and healthy 17% non-GAAP net income growth (excluding tax benefit in 1Q11). But the non-GAAP OPM eroded by 230bps vs. 1Q11 due to higher G&A and R&D costs. We raise our FY12 sales forecast by 1.0% and maintain our net income forecast unchanged. We raise our PO to US$32 as we roll forward our 12 month forward PE into the first half of 2013. Trading on a 12 month PE of ~18x with mid teens growth prospects in future years, we believe Mindray's shares are fairly valued." MR closed at $31.79 on Monday.