Rabobank disappointed with Arseus' organic growth, recommends "hold".
M2 PHARMA-July 8, 2011-Rabobank disappointed with Arseus' organic growth, recommends "hold"(C)2011 M2 COMMUNICATIONS
8 July 2011 - Rabobank cheered the second-quarter revenues of Belgian health products wholesaler Arseus (EBR: RCUS), but said it is disappointed with its organic growth.
The bank maintained its "hold" recommendation and EUR12.50 share price target.
Arseus' second-quarter revenues grew by 12.5% on the year to EUR121.4m (USD174.2m), slightly up from the projected EUR120.4m by Rabobank. Organically, revenues grew by 2.7%, while the bank had bet on a 3.5% rise.
The Fagron division achieved the highest organic growth of 6.7%. All other divisions showed a disappointing organic development, according to the bank.
For full 2011, Arseus expects organic revenue growth of 3% to 6%. According to Rabo, the revenue growth is currently at the lower end of the range.
At 08:27 GMT on Friday Arseus shares gained 2.41% to EUR11.49 in Brussels trading.
(EUR1 = USD1.435)
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|Date:||Jul 8, 2011|
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