C.R. Bard (NYSE: BCR )
finds itself in an interesting and unfamiliar situation – for the
first time in quite a while, the Street actually has relatively
demanding growth expectations. Bard has long based its business upon
strong share in lower-average selling price consumables-driven
businesses that don't offer spectacular underlying growth. Now
management is looking to deliver more growth, as it prepares to leverage
its new Lutonix drug-coated balloon and acquisitions driven by the
incoming cash from Gore's patent infringement damages.
Bard has indeed returned to a level of growth that hasn't been seen
in years. As is so often the case, though, my concern now is with the
expectations that are getting baked into the valuation. With today's
valuation not leaving much (if any) margin of safety, I'd prefer other
names in the med-tech space.
Read the full article at The Motley Fool:
High Expectations for Growth: Is CR Bard Overvalued?
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