UBS Downgrades Cooper Companies to Neutral from Buy
UBS downgraded its rating on Cooper Companies (COO ) equity to neutral from buy, citing the company's results for the fourth quarter and prospects for 2006.
Analyst Benner Ulrich says the results were in line with expectations. However, he thinks the company's limited near term manufacturing capacity could restrict contribution from new products, as well as hurt its top-line growth and margins in the first half of fiscal year 2006. Ulrich recommends moving to the sidelines ahead of those results in the first half of the year. The analyst cut a $928 million fiscal year 2006 (ending October) revenue estimate to $917 million (vs. $933 million to $946 million guidance).