KeyBanc Ups Invacare Opinion

Analyst Robert Goldman says the company has more sales growth potential than originally thought

KeyBanc Capital Markets upgraded its opinion on Invacare (IVC ) to aggressive buy from buy, citing greater than previously projected sales.

Analyst Robert Goldman says that he had underestimated the potential for growth of Invacare's HomeFill product. He sees Homefill sales of $140 million in 2006 and $180 million in 2007. Meanwhile, Goldman thinks that Invacare's plans to move more manufacturing to China could spur labor cost savings amounting to about 40 cents per share annually, none of which is in Goldman's guidance or models.

Goldman conservatively raised his estimate on Invacare for 2006 to $2.80 earnings per share from $2.75. His 2007 estimate moved to $3.30 from $3.20. He's keeping his 2005 earnings per share estimate at $2.27, however. The analyst raised his $48 price target on the stock to $50.

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