Endo International (ENDP) PT Raised to $92 at Cantor Fitzgerald

Cantor Fitzgerald analyst Irina Rivkind Koffler bumped her price target on Endo International plc (NASDAQ: ENDP) to $92.00 (from $80.00) amid the Par transaction but maintained a Hold rating, saying they do not view the stock as meaningfully undervalued given Endo's business composition and significant leverage.

Koffler commented, "Endo has moved deeper into the generics segment with its recent announcement about the pending acquisition of Par for $8.05B (financed as $1.55B stock/$6.5B cash). This deal is expected to close in 2H:15. Since Par has been generating ~$1.44B in annual sales (based on a 1Q:15 run rate of $359M), we estimate that Endo paid a 5.6x sales multiple for the asset. This valuation is nearly double the 2-3x sales multiples pursued by companies like Valeant for a low-margin business with significant pricing pressure. While we acknowledge additional value creation from this transaction, and management indicated that the deal will position it for even more M&A down the line, we just aren't that excited about a heavily levered generics company that is trading at ~16x 2016 EPS relative to ~14x for its generic peers."

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 $85.00 yesterday.

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