Goldman Sachs Reiterates Sell Rating on Owens & Minor (OMI)

Goldman Sachs is out with a research report this morning, where it reiterates its Sell rating on Owens & Minor OMI; it has a $26.00 price target on the stock. The GS analysts cited the company's recent earnings release, which was slightly better than expected. Despite that, the analysts believe the results do not suggest a meaningful pick-up in hospital utilization. Despite recent top-line growth, the company maintained its 2011 guidance for 3%-5% revenue growth, which they believe could prove challenging given the lack of definitive signs of improvement in underlying demand. In light of competitor Cardinal Health's commentary around "sluggish" in-patient procedure volumes, the analysts still consider the current utilization picture to be a headwind for OMI.