PSS World Medical Given A ‘Buy’ Rating (PSSI)

PSS World Medical PSSI has given strong revenue guidance for its next quarter. The company has reiterated its EPS estimate of $1.27-$1.31. PSS World Medical (PSSI) expects $2.07 billion in revenue, more than the Street estimate of $2.055 billion. The company’s revenue estimate is based on 2.5%-3.0% same day selling growth. Based on this revenue projection, Jefferies and Co. has estimated the company’s EPS for FY2011 at $1.41. The report suggests that the company should move to position itself more as a consultative partner to physicians. Jefferies has conferred a ‘Buy’ rating on the stock with a $28 price target, which is based on 19x CY2011 EPS estimates of $1.47.