Owens & Minor price target raised to $7.50 from $7 at BofA

BofA raised the firm’s price target on Owens & Minor to $7.50 from $7 and keeps an Underperform rating on the shares after the company announced that it and Rotech Healthcare have mutually agreed to terminate their pending merger. The news was “surprising” given the competitive landscape in the durable medical equipment space, says the firm, which did not view the combination of Owens & Minor and Rotech as anti-competitive. However, given the significant amount of time being allocated to this deal, the firm views the decision not to move forward favorably as it will allow the company to focus on its core operations, the analyst added. While the firm views the scrapped deal news positively, it thinks that a broader turnaround will require a “delicate balance” of reducing costs, improving working capital, and de-levering while investing for growth, BofA says.

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions

• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

See the top stocks recommended by analysts >>

Read More on OMI:

Disclaimer & DisclosureReport an Issue

• Owens & Minor price target raised to $10 from $9 at Baird

• Owens & Minor’s Strategic Setbacks and Financial Challenges Justify Sell Rating

• Owens & Minor rises 16.8%

• Trump-Xi call focuses on trade, PVH reports Q2 beat: Morning Buzz

• Owens & Minor rises 17.1%