Morgan Stanley Comments on C.R. Bard Amid Litigation

Morgan Stanley has published a report on C.R. Bard (NYSE: BCR).

In the report, Morgan Stanley wrote, "After a strong 1Q11, Bard discussed managing down to meet their 14% earnings growth obligation. Now, after a pressured 2Q11, they may need to manage EPS up. Even if organic revenue does not accelerate into the back half, Bard could still reach the low end of revenue guidance. Also, Bard appears committed, and we think they are capable, of hitting their 14% mark. Increasing gross margins and limited R&D investments will help them achieve this goal, in our view. Considering tight earnings control and the lack of visibility on the upcoming Gore lawsuit, we would expect the stock to be somewhat range bound over the near-term."

Morgan Stanley rated C.R. Bard an Equal-weight with no price target. C.R. Bard closed Thursday at $112.71.