Impax Laboratories (IPXL) PT Cut to $24 at Leerink Partners
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Leerink Partners analyst Jason Gerberry cut his price target on Impax Laboratories (NASDAQ: IPXL) to $24.00 (from $33.00) following a big Q2 miss and "questionable" guidance. The firm maintained a Market Perform rating.
Gerberry commented, "In 2Q, IPXL missed consensus sales and EPS by 25% and 54%, respectively. Sources of the miss include a ~30% Y/Y generic sales decline, with mgmt citing increased competition to key generic products and several delays (pipeline & TEVA [OP] deal close). As a result, we are lowering our sales forecast in '16E and '17E by 7% and 3%, respectively, to reflect the near-term generic segment headwinds but raising our ’19-21E est. modestly due to contributions from new exclusive launches. The net impact of these changes is a 9% and 7% reduction in '16E and '17E EPS, respectively, with more modest +/- 1-2% changes in '18E+ EPS. Rytary growth in 2Q moderated to +27% and mgmt. cited sales force disruption as factor. We are trimming our ’16-21E Rytary forecast by 15% to reflect more modest growth trend. We remain MP with a PT of $24 (fr $33) on IPXL's limited revenue upside and US generics outlook."
Shares of Impax Laboratories closed at $23.43 yesterday.
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