Jefferies Cuts Price Target on Akorn (AKRX) to $24; Reiterates Buy
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Jefferies maintained a Buy rating on Akorn (NASDAQ: AKRX), and cut the price target to $24.00 (from $35.00), following the company's 3Q earnings report. Jefferies lowered estimates as re-inspection issues create more uncertainty. Assuming a 6 month delay expected revenues from pipeline products have been cut by $30M to $55M next year and FY17 total revenues and EPS were adjusted to $1.19B and $2.46 (vs $1.22B & $2.56).
Analyst David Steinberg commented, "Q3 revs & EPS were $17M & $0.02 ahead of consensus despite higher R&D spend & lower gross margin. The results however were overshadowed by the disclosure that the Decatur plant needs to be re-inspected which could result in the delay of 10 (out of 25 expected) ANDA approvals by 1Q17 and a DOJ probe on generic drug price collusion. The sharp 18% selloff (vs 4% for XBI) does not seem fully warranted in our view particularly as AKRX was not named in the DOJ probe."
Shares of Akorn closed at $20.27 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co, Earnings
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