Buckingham Research Maintains a 'Neutral' on Endo Pharma (ENDP); Sees Near-Term Upside

April 16, 2009 10:38 AM EDT

Buckingham Research maintains a 'Neutral' on Endo Pharma (Nasdaq: ENDP).

Buckingham analyst says, "We expect shares to trade up into 1Q09 results on April 29th, possibly to as high as $20 per share with limited near-term downside risk. Strength in generics should lead to EPS upside. While we are Neutral longer-term, we see low valuation (just 5.8x 2010 EPS) and expected upside to the $0.65 consensus for 1Q09 to lead to near-term strength in shares. We raise our 1Q09 and 2009 Cash EPS estimates by $0.02 to $0.67 and $2.65 per share with our 2010 Cash EPS estimate going to $3.05 (from $3.00) all above consensus estimates. KV’s manufacturing problems have led to dramatic growth in Endo’s morphine sulfate painkiller while the Endocet painkiller has grown strongly as well due to shortages. For March quarter, total Endo prescriptions grew a strong 30.6% year-year with morphine sulfate up 47.6% year-year and Endocet up 44.4%. We raised our generic forecast to $31.4 million for 1Q09 (up $7.24 million). We expect Endo’s key products to be generally in-line with our forecasts based upon March quarter TRx."

Endo Pharmaceuticals Holdings Inc., is a specialty pharmaceutical company in pain management.

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