Singular Research Maintains Buy, $28 Target on Synovis Life Technologies

Singular Research reiterates its Buy rating and $28 target price on Synovis Life Technologies SYNO as the company posts strong 4Q results following announced acquisition by Baxter. Singular Research says, "SYNO reported Q4:11 sales of $22.1 million, up 22% and $0.4 million above our forecast. EPS grew 83% to $0.24 from $0.13 in Q4:10, significantly above our $0.17 estimate. Higher than expected sales and wider gross and operating margins contributed to this strength. ...We continue to believe shareholders should stay invested in SYNO as we think there is a possibility of a better offer with contingency rights or a higher price. We see limited risk of at least the current deal not being completed." SYNO closed at $27.92 per share on Thursday.