Morgan Stanley Initiates BCR Coverage With An EW Rating

Morgan Stanley is initiating coverage on shares of C.R. Bard, Inc. (NYSE: BCR) with an EW rating.

“Bard's premium multiple of 15x (vs. peers at 13x) is justified, given that it is insulated from structural pressures facing high-end implantable providers, continues to offer top-quartile growth, and remains a good steward of shareholder capital,” Morgan Stanley writes.

“However, given recent performance, we do see obstacles to further multiple expansion as: 1) cyclical recovery in Foleys and PICCs appears somewhat priced into the multiple even though a 2H11 recovery remains clouded; 2) margin profile suggests less room for expansion vs. peers and 3) R&D investment is unlikely to yield an efficiency inflection prior to 2013.”

C.R. Bard currently trades at $91.56.