UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on C.R. Bard

In a report published Friday, Citigroup reiterated its Neutral rating on C.R. Bard BCR, but lowered its price target from $103.00 to $99.00. Citigroup noted, “We rate shares of C.R. Bard Neutral. Bard re-emerged as a value play in the med tech space after its pending merger with Tyco dissolved in early 2002. The company initially fell back into its standard pattern of +6-8% organic sales growth and +10-12% EPS growth. Starting in 2H03, share gains and new product flow drove organic sales growth greater than 10%, while operational improvements pushed EPS growth north of 15%. Following a challenging period in 2009 when the company again experienced top-line pressure, management turned to aggressive cost cutting to sustain EPS growth with a return to tuck-in acquisitions to help fuel a rebound in sales growth that should help sustain results in line with many of its peers. Recent sales growth has slowed to the 2-5% range which is similar to overall med tech as utilization and pricing in most developed markets have come under pressure. Most recently, Street estimates for Bard have risen behind an expected victory over privately-held Gore in vascular graft intellectual property and assuming a 1Q13 royalty start and damages payment, the company should see a sizable uplift in sales and EPS growth in 2014.” C.R. Bard closed on Thursday at $102.07.