New owners for American Medical Systems
Endo International bought Minnetonka-based American Medical Systems Holdings in June 2011 for $2.7 billion. American Medical Systems makes devices for the diagnosis and treatment of erectile dysfunction and incontinence.
On March 2, Boston Scientific Corp. announced that it would buy the American Medical Systems urology portfolio from Endo International for $1.6 billion in cash and up to $50 million more in milestone payments.
Michael Weinstein, who covers Boston Scientific for J.P. Morgan, reiterated his "overweight" rating on Boston Scientific and estimates that American Medical Systems will add 4 to 6 percent to Boston Scientific's earnings despite not growing as fast as Boston Scientific's existing urology line.
Weinstein wrote in a research report that sales at the AMS business had been growing in the 2 to 3 percent range over the past few years compared with the approximately 6 percent rate of Boston Scientific's urology line. "Management stated that they expect to recognize sales synergies from the deal which will benefit AMS sales over time," Weinstein wrote.
Patrick Kennedy
Upgrades for Xcel Energy and Otter Tail
Robert W. Baird analyst David Parker has raised his ratings on Minneapolis-based Xcel Energy Inc. and Fergus Falls-based Otter Tail Corp. Parker moved both companies from "neutral" to "outperform" last week.
