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CR Bard Inc. Message Board

  • investora2z investora2z Jun 20, 2013 7:37 AM Flag

    Touching historic highs

    The stock is at historic highs and is about 17% above the 52 week low. JPMorgan has a price target of $116 which is a few percentages away. Consensus rating for the stock is hold, and the consensus price target is around $106 which is below the current market price. Future growth in the stock may be a little difficult, mainly because the net income has been decreasing over the last many quarters, and even the revenues have remained flat. In the last quarter, the revenues showed 1.6% growth and the net income fell by around 35%. The trailing P/E is around 20 and the forward P/E for the year ending December 31 2014 is 14.5, which indicates modest growth over the next many quarters. The margins have also declined, and the price to sales is now around 3. Debt is also a little high at $1.4 billion. The estimate for 2013 EPS is $6.26 ($6.16 last year) implying a marginal growth. For companies like BCR, innovation is the key to future success, and progress on new product development is extremely important. Even a small medical device company PLC Systems (PLCSF) has been able to build an IPR portfolio around a single product RenalGuard and recently obtained European and US patents. As per a recent report, the emerging markets remain the main hope for increasing growth in companies like BCR. Though Europe and Japan are important markets, growth in medical tourism in China & India has led to increased demand from these countries. More and more patients go to these countries for treatment of diseases like cancer due to the cost advantage and the fact that the facilities have improved in those countries. So the immediate growth may not be that robust, but the long term prospects for BCR may remain good. The stock may need a fundamental push.

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224.28+0.54(+0.24%)Sep 30 4:02 PMEDT