Piper Jaffray Remains Sidelined on Endo Int'l (ENDP) Following 2Q Beat
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- PayPal (PYPL) PT Lifted to $48 at Mizuho Following Solid Q3
- Philip Morris Intl (PM) PT Raised to $101 at Jefferies
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesPiper Jaffray, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!