Jefferies Reiterates Buy on Patterson Companies (PDCO)

Jefferies reiterates its Buy rating and is raising its price target from $31.00 to $35.00 on Patterson Companies (NASDAQ: PDCO).

In a report sent to clients, Jefferies writes, "During the quarter, sales were up nearly 30% despite lapping a 45% increase in FY2Q10. This was a strong rebound from the 20-25% decline in FY1Q11. Sales of new units drove most of the growth, and were up over 50% YoY.Our new $35 PT is based on 17.5x our CY2011 EPS estimate of $2.03. The multiple is in line with Patterson's 12-month historical average, but a discount to its 5-year average 18x. Adding a 1.5% yield implies 15%-plus total return."

PDCO closed Tuesday at $29.04.