UBS Cuts Estimates and Price Target on InterMune (ITMN); Don't Expect Clarity Until '13

July 24, 2012 1:20 PM EDT Send to a Friend
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Price: $73.89 --0%

Rating Summary:
    8 Buy, 9 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 40
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UBS maintains a 'Neutral' on InterMune Inc. (NASDAQ: ITMN) price target of $10.50 (from $13.50).

Analyst, Matthew Harrison, reports three key points from the company's conference call: (1) Management believes the weak rev growth was driven by high discontinuations (~30% vs 20% annually) due to pts with aggressive disease making up more of the initial pt pop and dropping off sooner than mild/mod points. Also a greater loss of point during titration contributed. (2) Mgt. now believes 1/3 of starter packs are NOT used by new pts, so adj. new pt. adds are 350 (4Q11), 300 (1Q12) and 400 (2Q12). (3) Mgt. expects higher priced countries to trend toward the German price over a few years.

Harrison doesn't see little in the way of upside catalysts, and therefore believes the stock will trade on quarterly revenues for the rest of 2012, which he doesn't expect will excite investors. (FY12 loss lowered from (3.00) to (3.25) and FY13 from (2.59) to (2.94))

For an analyst ratings summary and ratings history on InterMune Inc. click here. For more ratings news on InterMune Inc. click here.

Shares of InterMune Inc. closed at $9.91 yesterday.


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