Morgan Keegan Has Outperform On Cooper Companies (COO)

Morgan Keegan has an Outperform rating on The Cooper Companies COO, and is raising its price target to $50 from $48 on the possibility of refinancing a revolver. In the research note, Morgan Keegan writes, "In our opinion, it is likely that will Cooper could refinance its $650 mn revolver in the next 4-months. Recall, Cooper has $285 mn drawn on the revolver, which matures in January Lawrence S. Keusch 2012. Based on our analysis, we estimate less than a 1% dilutive impact to 2011 EPS results, including transaction costs. Consequently, given our increased comfort with the future earnings power and limited dilution from a refinancing, we are raising our price target to $50 from $48." Shares of The Cooper Companies gained $2.10 yesterday to close at $46.15, a gain of 4.7%.