Gabelli Has Buy Rating On Owens & Minor

Gabelli & Co. is out with a research report on Owens & Minor Inc OMI and it had a Buy rating on shares. In a note Gabelli writes, "We are lowering our 2011 EPS estimate to $1.95 from $2.05. Overall, new business wins are slightly greater than expected, leading to 4-6% sales growth, up 1% from previous expectations, but OMI will spend at the high end of expectations to ensure smooth startups. While the new business pressures 2011 earnings, it sets up 2012 as a year of steady sales growth and strong operating margin expansion as operations are normalized." Shares of OMI closed at $30.90 yesterday.