Research Alert: CFRA Keeps Hold Opinion On Shares Of Hillrom Holdings, Inc.
03:05 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our target price by $9 to $108 based on a multiple of 16.5x our FY 22 (Sep.) EPS estimate. FQ1 EPS of $1.53 vs. $1.13 was well ahead of our estimate of $1.10 because of better-than-expected sales and one-time Covid-related revenue. We lift our FY 21 EPS estimate to $5.83 from $5.52 and our FY 22 EPS to $6.56 from $6.18. Sales grew 8% Y/Y to $741 million, inclusive of one-time Covid-related revenue of $40 million. HRC's base business, across all segments, outperformed expectations. Notably, the Patient Support Systems segment had strong sales because international customers have been looking to expand their ICU capacity in the wake of the pandemic. Last month, HRC announced its intent to acquire Bardy Diagnostics, which is a leading provider of ambulatory cardiac monitoring technologies, for $375 million and future milestone payments. We positively view the transaction because we expect it to be accretive by year 2 and capable of generating a 10% return on capital by year 5.