Owens & Minor Shares Slide On Baird Downgrade
NEW YORK (AP) â¿¿ Shares of medical and surgical supply company Owens & Minor Inc. fell Wednesday after a Baird analyst downgraded the stock, citing market pressure on the sector.
THE SPARK: Baird analyst Eric Coldwell downgraded shares to "Neutral" from "Outperform" and set a $30 price target.
THE ANALYSIS: "Health care equities have been broadly punished in recent weeks and valuation is well below normal for Owens & Minor, but also for many stocks with better profiles and clearer catalysts," he said, in a note to investors.
He still views Owens & Minor as a defensive stock, but doesn't expect outperformance for the remainder of the year. He cited flat revenue expectations in 2010 because of a weak market, along with competitive pressure and pricing pressure."In a period of extreme health care sector pessimism and with numerous alternative investments at similar or better valuation, it is difficult to see near-term outperformance," he said. Owens & Minor on Monday reported second-quarter profit that missed Wall Street expectations and forecast 2010 earnings at the lower end of its guidance. The company said high unemployment is affecting consumers' use of health care services, and thus use of its medical and surgical supplies. SHARE ACTION: Down 70 cents, or 2.6 percent, to $26.38 in morning trading. The stock has traded between $25.52 and $32.80 over the last 52 weeks.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV