Deutsche Bank Analyst Suggests Endo (ENDP) Unfairly Lumped in With Other Specialty Pharma Names

Deutsche Bank maintained a Buy rating on Endo International plc (NASDAQ: ENDP) with a price target of $88. Analyst Gregg Gilbert called today's sell-off a head-scratched, and he suggested the stock was unfairly lumped in with some other specialty pharma names.

"ENDP shares have been weak of late along with the Specialty Pharma group, and has been off as much as 8% today. While some investors may have viewed ENDP in the past as “another Valeant” because (1) CEO Rajiv De Silva came from VRX, and (2) like VRX, ENDP has been an acquisitive company, we note that ENDP has taken a different path from that of VRX in terms of business mix and pricing behavior," said Gilbert.

The analyst added, "Following the recent close of the Par Pharmaceutical acquisition, ENDP provided an outlook for ’16, adding more visibility relative to many other companies that we follow. As investors/analysts in the coming weeks delve into key assumptions behind the ’16 outlook, we suspect that management will indicate that volume is a more important contributor than price to the outlook. For those that continue to focus on companies’ pricing behavior, it may be helpful to note that based on our recent analysis, ENDP’s pricing behavior (magnitude and frequency of increases) for its brand products is on the more modest side of average. And of course, the Par acquisition has shifted the US brand/generic/international revenue mix to ~30%/60%/10% (from ~43%/46%/11% n 2Q)."

For an analyst ratings summary and ratings history on Endo International plc click here. For more ratings news on Endo International plc click here.

Shares of Endo International plc closed at $71.06 yesterday.

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