Goldman Sachs reiterated its outperform rating on Fisher Scientific (FSH ).
Analyst Christopher McFadden says Perbio Science, for which Fisher will make a $714 million cash offer, focuses on consumable tools for the protein research and drug production markets, which is estimated to grow 10%-15% thru 2005. He notes two-thirds of Perbio's sales are in the U.S.
McFadden thinks the acquisition is consistent with Fisher's strategy of leveraging its position in the scientific market and boosting its self-manufactured mix. He sees accelerated sales growth to 6.5%-7.5% in 2003, and 10%-12% in 2004. He says debt levels should be worked down to pre-acquisition levels by 2005.
McFadden raised the $2.25 2003 earnings per share estimate to $2.27, and sees $2.72 for 2004.