Morgan Keegan Maintains Outperform on The Cooper Companies

Morgan Keegan is out with its report today on The Cooper Companies

, maintaining Outperform. In a note to clients, Morgan Keegan writes, "We recently had a chance to meet with management, including the chief medical officer of CooperSurgical. In summary, we continue to see a five-year margin expansion opportunity driven by gross margin, SG&A leverage beginning in 2013, and the expiration of silicone hydrogel royalties in 2014-2016. We also see a steady cadence of acquisitions, primarily at CSI, which can be funded by the company's solid FCF generation. Importantly, if management is successful in executing on the stated initiatives, EPS outperformance should be on tap for 2012. In fact, our model suggests earnings power that could approach $5.00 in 2012. There is no changes to our Outperform rating and $85 price target." Shares of COO closed Wednesday at $77.51, up 0.71% from Tuesday's close.