Tags: C.R. | Bard | growth | BCR

C.R. Bard: Clear Market Leader in Growth Healthcare Sector

By    |   Tuesday, 14 August 2012 07:24 PM

C.R. Bard (BCR) is the kind of stock a long-term investor would treasure, a clear market leader in a sector very likely to grow its size of the total economy for decades to come: healthcare. Nevertheless, analysts are unsure the company is priced right for its immediate prospects.

C.R. Bard is designs, manufactures, packages, distributes and sells medical, surgical, diagnostic and patient care devices. The company sells a broad range of products to hospitals, individual healthcare professionals, extended care facilities and alternate site facilities on a global basis.

In general, Bard’s products are intended to be used once and then discarded or implanted either temporarily or permanently. The company participates in the markets for vascular, urology, oncology and surgical specialty products. In part, Bard’s strategy focuses on serving fast-growing or underserved markets, management said in a recent filing, among other factors.

“Bard’s execution of this strategy has helped the company establish market leadership positions across its four product group categories. In 2011, approximately 80 percent of the company’s net sales were derived from product lines in which the company holds a number one or number two market share position.”

C.R. Bard has a market cap of $8.25 billion in a sector, healthcare equipment and supplies, where the average company size is $4.65 billion. Its trailing 12-month P/E ratio is 16.68 and its five-year projected price-to-earnings-growth (PEG) ratio is 2.02, compared to 1.92 for the sector.

Its projected earnings per share growth for the coming year is 7.84 percent, compared to a sector average of 12.81 percent.

Transition year

Analysts are generally positive on BCR, with buy or outperform calls from Jefferies and Raymond James but an underperform rating from Lehman Brothers.

“We believe many of its products hold market-leading positions, and we view its product pipeline as promising. But with much of its planned launches not occurring until the second half of 2012, we see 2012 as a transition year,” Standard & Poor’s analysts wrote in late July, rating the stock a hold.

C.R. Bard next reports on Oct 25.

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Tuesday, 14 August 2012 07:24 PM
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