Bruker BioSciences Corp. (BRKR)

[MSC290]

Out of the Gate: Bruker Jumps

Bruker BioSciences Rises After Bear Stearns Upgrades Stock, Predicts Earnings Growth Into 2009

October 05, 2007: 10:31 AM EST

NEW YORK (Associated Press) - Shares of Bruker BioSciences Corp., which makes X-ray technology and molecular analysis tools, climbed Friday after a Bear Stearns analyst upgraded the stock, saying the company's profit should grow 30 percent in both 2008 and 2009.

Stephen Unger raised his rating to "Outperform," or "Buy," from "Peer Perform," and said the stock should rise to $12 by the end of 2008. He expects the company to report an adjusted profit of 23 cents per share this year, matching last year's results.

Unger forecast profit of 30 cents per share in 2008 and 39 cents per share in 2009. He said Bruker's revenue should grow more than 10 percent per year over that time, and its profit margins will increase.

The stock picked up 53 cents, or 6.2 percent, to $9.13. Unger's price target implies 39.5 percent growth from Bruker's Thursday closing price of $8.60.

The weak U.S. dollar is good news for Bruker, Unger said in a client note, as about 75 percent of its revenue _ and all of its operating profit _ comes from overseas. Almost half of its total profit comes from Germany, he added, and starting in 2008, Bruker will be able to pay lower taxes in the country.

Analysts polled by Thomson Financial expect Bruker to earn 33 cents per share in 2008 and 43 cents per share the next year.

Three analysts now rate the Billerica, Mass., company at "Buy," and one assigns a "Neutral" rating.

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