Morgan Keegan Reiterates Outperform on The Cooper Companies

Morgan Keegan is out with its report today on The Cooper Companies COO, reiterating Outperform. In a note to clients, Morgan Keegan writes, "We are following up on a note published on April 14 and remind investors that we expect insider sales at Cooper to pick-up in the coming months as option grants expire. Specifically, there are 5- and 10-year options granted to senior management that expire on October 23, 2011. With the majority of the 5-year options not vested and exercisable until May 24, 2011, we would expect insider stock sales to notably accelerate after fiscal 2Q earnings results in early June. Importantly, there is no change to our positive thesis, which is predicated on operating margin expansion, strong free cash flow generation, sustainable mid single-digit revenue growth, and management's ability to make bolt-on strategic acquisitions. We reiterate our Outperform rating on Cooper shares and $80 price target. We would purchase the stock at current levels." Shares of COO closed Tuesday at $74.91, down 0.74% from Friday's close.