RTI Biologics initiated with "buy" - update

03/20/08 - Pac. Growth Equities

NEW YORK, March 20 (newratings.com) - Analyst Caroline V Corner of Pacific Growth Equities initiates coverage of RTI Biologics Inc (RTIX) with a "buy" rating. The fair value is set to $12.

In a research note published this morning, the analyst mentions that the company is scheduled to launch several new product offerings in 2008, with two new lumbar spinal fusion products expected in 1H08. RTI Biologics is well positioned to witness revenue growth across several product categories, which would drive margin expansion in the forthcoming several years, the analyst adds. The company is likely to witness operating margin improvement in the forthcoming two years, aided by rising revenues for high-margin sports medicine products, Pacific Growth Equities says.