UBS Warburg reiterates strong buy on Cooper Companies (COO).
Analyst Charles Olsziewski says second quarter earnings per share were $0.02 ahead of his estimate, and $0.03 better than consensus. He notes days sales outstanding in the company's base business fell to 73 from 86 in the first quarter.
Olsziewski says sales disruptions in February and early March have since been put to rest, and that gross margins at Biocompatibles have improved. He also notes management reaffirmed top-line and bottom-line targets for fiscal 2002 (Oct.) and fiscal 2003. Olsziewski sees $3.12 EPS for fiscal 2002. With the recent pullback in the stock, he notes Cooper trades at less than 12 times his $4.00 fiscal 2003 EPS estimate. He has a $68 target./