Becton Dicksinson Gains on Upbeat Note

Lazard Capital Markets analyst Jeffrey Frelick said in a client note that Becton Dickinson's medical-supply business, which accounts for 70 percent of its sales, was well-insulated from the risk that Medicare will lower reimbursement rates, while its diagnostic business is involved in high-growth areas.

Frelick said he expected per-share earnings growth of 12 percent in 2008 as well as 2009 for Becton Dickinson, and expected future earnings to be led by growth in revenue from its safety devices, flow cytometry and pharmaceutical systems.

"The company's business is in sound health and, importantly, is not tied to the performance of one or two key products," Frelick said.

Frelick rates Becton Dickinson, based in Franklin Lakes, N.J., a "Buy" and maintains a price target of $104. He predicts earnings per share of $4.94 in 2009, ahead of Wall Street estimates. Analysts polled by Thomson Financial expect the company to earn, on average, $4.84 per share in 2009.

Shares of Becton Dickinson gained $1.93, or 2.3 percent, to $86.12 in afternoon trading.