Bank of America Provides Color on CareFusion

Bank of America provided color on CareFusion CFN. In a research report published today, the rating agency commented on the company's new deal with Resmed RMD In the report, Bank of America states, “Last night CFN announced an exclusive, 5-year distribution agreement with Resmed (RMD) under which CFN will distribute RMD's Stellar 100 and Stellar 150 ventilators to hospitals and skilled nursing facilities. We provide more details on the deal below, but CFN does not expect a material EPS contribution in FY12. By our math, the 2013/2014 contribution is likely to be in the $0.01-0.02 range, suggesting this may have been more of a strategic deal for CFN to mitigate any potential competitive threat.” At the moment, Bank of America has a Neutral rating and a price target of $30 placed on the company's stock. On Monday, CFN lost 1.61% of its value to finish the day at $27.45.