CareFusion The medical technology company earlier this month reported second-quarter earnings of $95 million, or 42 cents a share, up from year-ago earnings of $76 million, or 34 cents. "We estimate that in order to meet management's goal of 20%-plus operating margin exiting fiscal 2014, the company needs to reduce expenses by 3% from the fiscal 2011 base," Morgan Keegan analysts wrote in a report Friday. "Given the sheer number of cost reduction initiatives that are ongoing, we believe that management can meets its goals." Shares of CareFusion were upgraded to buy from hold by TheStreet Ratings. CareFusion has a forward P/E of 12.89; the average for medical equipment companies is 32.59. For comparison, Abiomed ( ABMD) has a forward P/E of 121.79. Of the 16 analysts who cover CareFusion, nine rated it a buy and seven rated it a hold. TheStreet Ratings gives CareFusion a B grade with a $29.29 price target. The stock closed Thursday at $25.86 and has increased 1.77% year to date.