Bittersweet Comments from Needham & Co. regarding Sagent Pharmaceuticals (SGNT)

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Needham & Company analysts maintained a Buy rating on Sagent Pharmaceuticals (NASDAQ: SGNT) but cut their price target to $20.00 (from $25.00).

The good news is that Sagent Pharmaceuticals' model continues to “work”, said analyst Elliot Wilbur. “SGNT delivered strong topline performance in 2Q12, margins continue to expand and significant value continues to accrue in its ANDA pipeline, ensuring strong future growth prospects.”

“The bad news is that we think SGNT remains its own worst enemy with respect to the establishment and achievement of short-tem performance expectations, and management credibility likely has been dealt a significant blow following rather marked reduction in 2012 top- and bottom-line expectations,” warned Wilbur.

Needham & Company's $20 target reflects a 15.0X P/E applied to lowered 2014E EPS of $1.34 (was $1.76).

For an analyst ratings summary and ratings history on Sagent Pharmaceuticals click here. For more ratings news on Sagent Pharmaceuticals click here.

Shares of Sagent Pharmaceuticals closed at $13.25 yesterday, with a 52 week range of $13.14-$26.74.

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