Benchmark Maintains Buy on Synergetics USA

Deutsche Bank is out with its report today on Synergetics USA SURG, maintaining Buy. In a note to clients, Deutsche Bank writes, "In F2012 we forecast 50% EPS expansion to $0.33. That implies a 16x PE multiple for what becomes the current fiscal year in just two months (August). Based on our $0.22 F2011 EPS forecast, SURG carries a 24x PE multiple. We believe some of this growth may already be priced into the stock but feel there remains some margin of safety if growth proceeds more slowly than we forecast. Our $7.00 price target is based on a 22x multiple on forecast $0.33 EPS in F2012." Shares of SURG closed Friday at $5.40, down 1.64% from Thursday's close.