Innovation Remains Key Aid To MR's Expansion

While it may take another quarter or two for Mindray Medical International MR to demonstrate that its double-digit China non-tender sales growth is sustainable and the 10%+ 2011 net income growth guidance is deliverable, “we think the story could experience accelerated bottom-line growth in the high-teens to 20% in 2012 driven by new product launches, recovery in domestic sales and marketing channels and importantly, margin improvement,” Citi reports. “However, innovation remains key to aid MR's expansion into the high-end market and potential upside,” Citi writes. “Downside appears limited at this point, but we await increased visibility on the execution side.” Mindray Medical International closed Tuesday at $26.46.