Morgan Stanley Reports on Mindray Medical (MR)

In a report released today, Morgan Stanley commented on Mindray Medical MR. In the report, Morgan Stanley was bullish on the company. Morgan Stanley writes, “Mindray reported 1Q results with revenue beating but EPS missing our estimates on higher than expected operating expenses. MR saw lengthening AR and Inventory days in 1Q11, an inauspicious start of the year, in our opinion. However, we are encouraged by the strong growth demonstrated by China sales in 1Q11 (17%) and given Mindray reiterated full-year guidance of at least +16%YOY for top line and +10% growth for net income, we maintain OW awaiting for further business pick-up for both top and bottom lines in 2H11 after MR successfully implements its sales force restructuring.” Morgan Stanley has an Overweight rating on Mindray. The stock closed yesterday at $27.54, down from its opening price of $27.90.