Impax Laboratories (IPXL) PT Cut to $24 at Leerink Partners

August 10, 2016 7:08 AM EDT
Get Alerts IPXL Hot Sheet
Price: $12.25 -1.21%

Rating Summary:
    8 Buy, 16 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 32 | New: 34
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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."

For an analyst ratings summary and ratings history on Impax Laboratories click here. For more ratings news on Impax Laboratories click here.

Shares of Impax Laboratories closed at $23.43 yesterday.

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