USB Piper Jaffray downgraded shares of Biomet (BMET) to buy from strong buy because of price.
Analyst Scott Davidson says he continues to strongly believe in the strength of BMET's fundamentals and health of the orthopedic industry. Nevertheless, he thinks a buy rating better reflects both the stock's outstanding run over the past few years (up 150% since March 2000) and the ratio of risk to reward which that run has engendered.
Consistent with his positive long-term view of BMET and the industry, he looks aggressively for an opportunity to return the shares to a strong buy rating, he says. He sees EPS of $1.37 in FY 2002 (May) and has a $53 12-month price target on the stock.