Mentor shares rise despite fiscal year 2009 estimates

On Thursday, Santa Barbara, Calif.-based Mentor said it expects fiscal 2009 profit to range between $1.40 and $1.50 per share, on revenue between $405 and $425 million.

The earnings figure fell below the average forecast from analysts surveyed by Thomson Financial of $1.60 per share. Analysts's average revenue forecast of $407 million was included in the company's range.

The company also reported that its fiscal year 2008 profit fell 78 percent to $63.4 million, or $1.61 per share, compared with $290.6 million, or $5.99 per share, the year before.

Wachovia Capital Markets analyst Larry Biegelson, who rates Mentor shares "Market Perform," said although the company's pipeline, or the products Mentor is developing, has long-term potential, "the competitive and economic challenges that Mentor faces over the next 12 months outweigh any meaningful share price appreciation from positive data on its pipeline."

Although he cut his target price to $45 from $40, Maxim Group analyst Anthony Vendetti reiterated his "Buy" rating on shares, noting the company is "well positioned to capitalize on what appears to be a stabilizing domestic breast implant market."

Piper Jaffray analyst Thomas J. Gunderson had a more pessimistic outlook for Mentor due to the struggling economy leading to the deferral of aesthetic procedures. He affirmed his "Neutral" rating but reduced his price target to $29 from $34.

Shares rose 83 cents, or 2.8 percent, to $31.