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Q2 Results Remove Uncertainty in Hi Tech Pharmacal (HITK)

December 7, 2012 12:54 PM EST Send to a Friend
Get Alerts HITK Hot Sheet
Price: $43.49 -0.02%

Rating Summary:
    1 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 34 | Down: 12 | New: 36
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Yesterday Hi Tech Pharmacal (NASDAQ: HITK) reported Q2 earnings that topped estimates and, in the view of analysts at Canaccord Genuity, "brings upside and removes the uncertainty".

"HITK reported upside to fiscal 2Q results driven by solid revenue trends and sequential improvement in gross margin, reversing the recent pullback on concerns related to the quarter," said analyst Randall Stanicky.

He thinks sources of penitential upside include a strong cough and cold season, pipeline surprises, lack of competition for Fluticasone, and the company's strong cash position.

"HITK currently trades at 5.1x EV/EBITDA (ex special dividend) which we think is attractive given the high-barrier and strategic nature of the asset base," said Stanicky.

Canaccord Genuity has a Buy rating on Hi Tech Pharmacal (NASDAQ: HITK) and a price target of $42.00.

For an analyst ratings summary and ratings history on Hi Tech Pharmacal click here. For more ratings news on Hi Tech Pharmacal click here.

Shares of Hi Tech Pharmacal closed at $35.25 yesterday.




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