Bruker (Nasdaq:BRKR) Has Room for Margin, Cash Flow Growth

Bruker Corp. (Nasdaq:BRKR) has room for margin and cash flow growth, said UBS (NYSE:UBS), citing new products from acquisitions and internal initiatives.

UBS said, "After a number of prior false starts, during 2010 BRKR proved that the company was capable of delivering real operating leverage. BRKR’s new products (both organic & acquired) diversify and expand the company’s reach, while there is ample room for further operational improvements to help drive more margin expansion and cash flow growth.

"Although tougher comparisons from sales related to 4Q09 stimulus funding will likely keep Q4 organic growth below the double-digit levels seen during Q1-Q3, consensus expectations look reasonable and BRKR’s preliminary FY11 appears conservative. We see Q4 sales of $385M & EPS of $0.27; we est. 2011-12 sales of $1,505M & $1,665M, respectively, with EPS of $0.90 & $1.05 (was $1.03)."

Bruker closed Monday at $17.01, gaining $1.01, or 6.31 percent. UBS raised their price target on them from $17 to $21, and boosted their rating from "Neutral" to "Buy."