Piper Jaffray Remains Sidelined on Endo Int'l (ENDP) Following 2Q Beat
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Piper Jaffray reiterated a Neutral rating on Endo International plc (NASDAQ: ENDP), and raised the price target to $19.00 (from $18.00), following the company's 2Q earnings report. ENDP reported non-GAAP diluted EPS of $0.86 on revenue of $921M, compared to Street estimates of $0.74 and $864M, respectively.
Analyst David Amsellem commented, "Endo reported 2Q16 non-GAAP diluted EPS of $0.86 on revenue of $921M, compared to Street estimates of $0.74 and $864M, respectively, and notably, the company reiterated its 2016 guidance ranges. Given that the generics business is in a period of transition (i.e., rationalization of the portfolio; deep pipeline from Par that will gradually bear fruit), along with the reality of payments associated with the vaginal mesh settlements, we continue to believe that it would behoove ENDP to take an aggressive approach to the divestiture of non-core assets in order to accelerate debt paydown (net debt/EBITDA is currently at around 5x). With limited visibility on significant earnings growth over the next 2-3 years (particularly considering that the longer-term durability of Vasostrict is a question mark), we believe ENDP, at an EV/2017 EBITDA of 8x, is fairly valued. We reiterate our Neutral rating and PT to $19 from $18 on 5x (unchanged) 2017E EPS discounted at 10%."
Shares of Endo International plc closed at $18.19 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesPiper Jaffray, Earnings
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