Zacks Analyst Blog Highlights: Kyphon, Biomet and Cardinal Health

CHICAGO--(BUSINESS WIRE)--Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kyphon, Inc. (Nasdaq: KYPH), Biomet (Nasdaq: BMET) and Cardinal Health (NYSE: CAH).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Friday’s Analyst Blog:

Better Margin Outlook for KYPH

Kyphon, Inc. (Nasdaq: KYPH) reported first quarter results better than our EPS [earnings per share] and revenue estimates. Although we have backed out any Disc-O-Tech revenue contribution in 2007, given the delayed closing now expected in fourth quarter 2007, our EPS estimates go up on a better margin outlook. Our target moves up to $58.00, or 53x our 2007 EPS estimate of $1.09 and 37x our 2008 EPS estimate of $1.56. Our recommendation remains a Buy.

The high level of sales growth reported in the first quarter 2007 (+40%), is likely to continue. We estimate sales growth of roughly 42% in 2007, compared to the year ago period. KYPH has only penetrated, according to management, 20-25% of the 300,000 U.S. annually diagnosed vertebral compression fracture cases. A similar level of diagnosed cases exists in Europe.

Kyphon competes against larger, well-capitalized companies in the orthopedics space. However, within the kyphoplasty/vertebroplasty spine niche, Kyphon has leading market share, approximately double vs. its nearest competitor. Leading vertebroplasty companies include Biomet (Nasdaq: BMET) and Cardinal Health (NYSE: CAH).

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

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