UPDATE: Morgan Keegan Raises PT on Cooper Companies to $73 (COO)

Morgan Keegan is out with its report today on Cooper Companies COO, raising its PT from $65 to $73.

In a note to clients, Morgan Keegan writes, "Cooper reported 1Q earnings results that exceeded Street expectations. Sales were $293 mn (MK $276 mn, Street $285 mn) and adjusted EPS was $0.85, $0.19 ahead of our estimate. In our opinion, management delivered a very strong quarter reflecting market share gains, expansion in operating margin and robust FCF generation, all of which are central to our positive thesis. Moreover, management increased the 2011 outlook by $0.40 (at the mid-point of the range) with EPS guidance moving to $3.70-$3.90 from $3.30-$3.50 (consensus $3.54). Importantly, we believe that there could be upside to operating margin guidance with earnings power approaching $5.00 in 2013. Our price target is raised to $73 from $65. There is no change to our Outperform rating, and we would buy the stock at current levels."

Shares of COO closed Thursday at $63.62, up 3.25% from Wednesday's close.