From Standard & Poor's Equity ResearchBrean Murray upgraded Arrow International (ARRO
) to strong buy from accumulate, explaining that the company's turnaround is in full swing and its business fundamentals improving.
Analyst Arnold Kaufman says the turnaround is being driven by rising sales, which are projected to grow in the 10%-12% range. He adds that 90% of Arrow International's products are disposable, have steady revenue stream, and serve the critical care market. He sees $1.24 fiscal year 2007 earnings per share (EPS) and $1.60 in fiscal year 2008. He also has a $38 stock price target.