UPDATE: Jefferies Initiates Coverage On Owens & Minor On Expected Steady Growth

In a report published Wednesday, Jefferies analyst Sean Dodge initiated coverage on

with a Hold rating and $36.00 price target. In the report, Jefferies noted, “OMI is the largest distributor of medical & surgical supplies to U.S. hospitals. The outlook for hospital utilization is not very bright, but increasing client penetration and more customized deliveries will keep its U.S. growth humming at a modest pace. 3PL remains an exciting opportunity, but performance thus far has been somewhat inconsistent. Additional Movianto client adds and a return to profitability could cause us to reconsider our rating.” Owens & Minor closed on Tuesday at $35.01.