Canaccord Genuity on Life Sciences/Specialty Pharmaceuticals: Upgrades IPXL; Downgrades MRX
IPXL Hot Sheet
Rating Summary:4 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Canaccord Genuity on Life Sciences/Specialty Pharmaceuticals
Analyst, Randall Stanicky, said, "We are upgrading Impax (Nasdaq: IPXL) to BUY from Hold and raising our price target to $28 from $21, and we are downgrading Medicis (NYSE: MRX) to HOLD from BUY and lowering our price target to $36 from $38. The bottom line: while we have clearly been warming up to IPXL, we think we’re nearing an inflection point in the stock following a challenging 2011. We believe a combination of near-term headwinds about to lift against emerging catalysts and low Street sentiment set up IPXL well from here. For Medicis, our downgrade is not related to any new headwinds, but rather to a lack of upside drivers into what is likely a tough H1/12."
For IPXL: While the story is not without risk pending full FDA warning letter resolution, we think solid progress has been made, which against low Street expectations could spur a H1/12 rally...
For MRX: Our thesis on MRX has not played out as SOLODYN has clearly seen volatility as the drive for managed care coverage plays out, and our take-out thesis has been pushed out – though not eliminated. We don’t see any meaningful downside and still see valuation support on what is an inexpensive asset base, but we struggle to find any meaningful catalysts or drivers of upside to numbers...
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Analyst, Randall Stanicky, said, "We are upgrading Impax (Nasdaq: IPXL) to BUY from Hold and raising our price target to $28 from $21, and we are downgrading Medicis (NYSE: MRX) to HOLD from BUY and lowering our price target to $36 from $38. The bottom line: while we have clearly been warming up to IPXL, we think we’re nearing an inflection point in the stock following a challenging 2011. We believe a combination of near-term headwinds about to lift against emerging catalysts and low Street sentiment set up IPXL well from here. For Medicis, our downgrade is not related to any new headwinds, but rather to a lack of upside drivers into what is likely a tough H1/12."
For IPXL: While the story is not without risk pending full FDA warning letter resolution, we think solid progress has been made, which against low Street expectations could spur a H1/12 rally...
For MRX: Our thesis on MRX has not played out as SOLODYN has clearly seen volatility as the drive for managed care coverage plays out, and our take-out thesis has been pushed out – though not eliminated. We don’t see any meaningful downside and still see valuation support on what is an inexpensive asset base, but we struggle to find any meaningful catalysts or drivers of upside to numbers...
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