Blaylock & Partners Initiates coverage of Dade Behring With A 'Buy' Rating
NEW YORK, Dec. 12 /PRNewswire/ --
Blaylock & Partners' equity analyst David
Zimbalist today initiated coverage of medical device and life sciences company
Dade Behring with a "buy" rating and a price target of $42 per common share.
Mr. Zimbalist sees significant value in Dade's cash flow, which he believes is
stronger than Street expectations. In his view, the company has an attractive
razor/razorblade business model that should generate strong, recurring cash
flow. Overall, about 86 percent of the company's revenues come from consumable
reagents and service.
He also points to the company's record of debt reduction since emerging from a
reorganization in October 2002. In the next three-to-four years, continued debt
reduction should drive over 20 percent average EPS growth, leveraged by 8-to-10
percent operating growth. As well, Mr. Zimbalist expects interest as a percent
of operating income to move into the 15-to-20 percent range by 2006, down from
its current 49 percent level.
Moreover, Dade Behring's line of new products, improving reputation and key
market share gains should also weigh positively on the stock. Indeed, over the
next three-to-four years, Mr. Zimbalist expects Dade Behring to post 6-to-8
percent organic growth above the 5 percent industry growth rate. The Blaylock
analyst also feels that Dade Behring has an experienced and incentivized
management team.
Institutional investors interested in receiving more information should contact
Mr. Zimbalist at 212/715-3337 (). Journalists interested in receiving a copy of
the research report should contact J. Todd Smith at 212/252-8545, ext. 24 ().
Blaylock & Partners is a member of the National Association of Securities
Dealers, CRD number 35669.
DATASOURCE: Blaylock & Partners
CONTACT: J.Todd Smith of Starkman & Associates, +1-212-252-8545, ext.,
24, or , for Blaylock & Partners