UPDATE: Stifel Nicolaus Initiates CareFusion at Buy on Post-Spin Transformation Outlook

Stifel Nicolaus initiated coverage on CareFusion

with a Buy rating and a $33 price target. Stifel Nicolaus commented, "We are initiating coverage of CareFusion Corp. (CFN) with a Buy rating and $33 target price, reflecting a 13x multiple on CY14E EPS of $2.54 (excluding amortization). CFN remains in the early innings of a compelling multi-year margin expansion and EPS growth acceleration story. Importantly, CFN's margin expansion is not solely predicated on revenue growth acceleration, but also internally driven cost reduction and business realignment initiatives. We view CFN shares as inexpensive relative to industry valuation averages." CareFusion closed at $26.77 on Monday.