Needham & Company Maintains a 'Buy' on Akorn (AKRX); 2012 Guidance Suggesting Underlying Growth Momentum Remains Robust
AKRX Hot Sheet
Rating Summary:3 Buy, 0 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Buy' on Akorn (NASDAQ: AKRX) price target of $13.00.
Needham analyst says, "AKRX issued first-time 2012 financial guidance with expectations squarely set for another year of significant growth. While “base” revenue, excluding potential new approvals though inclusive of recently acquired Lundbeck portfolio appears largely in line with consensus, implied “new” product contribution in Street estimates appears particularly conservative suggesting AKRX’s beat & raise pattern of quarterly performance will continue into 2012. Despite significant appreciation over the course of 2011, we remain favorably disposed towards shares as new management and a reconfigured growth strategy have transformed a broken story into one of the more explosive growth stories in the generic drug space. While shares have paused in the face of valuation headwinds, we would note that the name now trades at just 15.0X our 2013 fully-taxed EPS estimate, an attractive PEG ratio given projected 30% compound EPS growth (fully-taxed) in the 2012-2015 horizon."
Needham raises FY12 EPS from $0.42 to $0.50 and revenues from $194.4 mln to $241.4 mln.
For an analyst ratings summary and ratings history on Akorn click here. For more ratings news on Akorn click here.
Shares of Akorn closed at $10.78 yesterday, with a 52 week range of $4.87-$11.77.
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Needham analyst says, "AKRX issued first-time 2012 financial guidance with expectations squarely set for another year of significant growth. While “base” revenue, excluding potential new approvals though inclusive of recently acquired Lundbeck portfolio appears largely in line with consensus, implied “new” product contribution in Street estimates appears particularly conservative suggesting AKRX’s beat & raise pattern of quarterly performance will continue into 2012. Despite significant appreciation over the course of 2011, we remain favorably disposed towards shares as new management and a reconfigured growth strategy have transformed a broken story into one of the more explosive growth stories in the generic drug space. While shares have paused in the face of valuation headwinds, we would note that the name now trades at just 15.0X our 2013 fully-taxed EPS estimate, an attractive PEG ratio given projected 30% compound EPS growth (fully-taxed) in the 2012-2015 horizon."
Needham raises FY12 EPS from $0.42 to $0.50 and revenues from $194.4 mln to $241.4 mln.
For an analyst ratings summary and ratings history on Akorn click here. For more ratings news on Akorn click here.
Shares of Akorn closed at $10.78 yesterday, with a 52 week range of $4.87-$11.77.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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