This content is from: Research

Health Care – Medical Supplies & Devices: 2012 Third

Newcomer David Lewis shoots straight in to third place.

David Lewis
Morgan Stanley
Newcomer David Lewis shoots straight in to third place. “In a land of consensus thinking, David seeks to look at his universe from a different point of view,” notes one investor. The sector is undergoing a period of secular pressure, which has depressed growth and limited margin expansion, the Morgan Stanley analyst explains. “The opportunity for outperformance hinges on companies combating difficult end markets with improving R&D efficiency, cost-of-goods reduction, distribution leverage, capital deployment; and increasing their focus on emerging markets,” he adds. Lewis launched coverage of Spain’s Grifols, a plasma-therapeutics provider, in September 2011 with an overweight rating on the American depositary receipts, at a split-adjusted $12.84, on the grounds that the company would gain market share following its acquisition of Talecris Biotherapeutics Holdings Corp. of Research Triangle Park, North Carolina. The stock raced to $20.57, soaring 60.2 percent and shooting past the sector by 46.8 percentage points, through August.


Kristen Stewart Deutsche Bank Securities

Related Content