Morgan Keegan Anticipates COO Sales Pick-Up, Makes No Changes To Its Fundamentals

Morgan Keegan recently reviewed option grants for The Cooper Companies Inc. COO, and based on an upcoming expiration, “we expect insider sales to pick-up in the coming months.” “Specifically, there are 5- and 10-year options granted to senior management that expire on October 23, 2011,” Morgan Keegan writes. “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.” The Cooper Companies closed Wednesday at $72.62.