On Sep 16, we have updated our research report on CR Bard Inc. (BCR). The company continues to show improvements based on strong performance in all the product groups. We are optimistic about its upgraded bottom line guidance for 2014.
CR Bard is a well-diversified company, providing a complete line of products to treat medical conditions through less invasive procedures in a cost-effective manner. CR Bard’s strategy to introduce its products in the emerging markets is delivering accretive returns, as the company continues with its sturdy performance in the international markets.
The settlement of the Gore litigation lawsuit in the company’s favor is a material upside for CR Bard. Benefits from the proceeds will allow the company to invest in strategic mergers and acquisitions, develop new products and leverage shareholder return as well.
For the full year, CR Bard raised its adjusted earnings per share guidance to the band of $8.25–$8.35 from the prior range of $8.20–$8.30. The current Zacks Consensus Estimate of $8.31 lies within the guided range. Constant currency sales growth is anticipated between 8 and 9% for 2014.
However, CR Bard is exposed to competition from large manufacturers with multiple business lines, to smaller manufacturers, which offer a limited selection of products, and to a limited extent, reprocessors of single-use medical devices.
Further, the pricing environment has been lackluster for most of the devices offered by the company due to competition and a soft hospital equipment purchase backdrop
Currently, CR Bard carries a Zacks Rank #3 (Hold). Some better-ranked medical/dental supplies stocks that are worth a look include The Cooper Companies Inc. (COO), Straumann Holding AG (SAUHF), and McKesson Corp. (MCK). The Cooper Companies and Straumann Holding sport a Zacks Rank #1 (Strong Buy), while McKesson carries a Zacks Rank #2 (Buy).
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