Bank of America Reiterates Neutral, $88 Target on CR Bard

Bank of America maintains its Neutral rating and $88 target price on CR Bard (NYSE: BCR) as the company announces necessary but dilutive deal that may take time.

Bank of America comments, "During BCR's investor day yesterday BCR announced a very sound but very dilutive deal to enter the strategically critical drug coated balloon space, which caused the company to give first time 2012 EPS guidance that was about 6% below Street estimates. BCR continues to do the right things for the company's long term outlook (R&D, M&A), but the main takeaway from yesterday's analyst meeting for us was that those things are dilutive and take time."

BCR closed at $87.78 per share on Tuesday.