Goldman Sachs Reinstates Coverage on Warner Chilcott (WCRX) at Neutral; Special Dividend Nice, But Visibility Still Cloudy

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Goldman Sachs reinstates coverage on Warner Chilcott (NASDAQ: WCRX) with a Neutral. PT $19.00.

Analyst, Gregory Waterman, said, "We believe WCRX valuation remains undemanding, but greater upside will depend on improved product trends, increased pipeline visibility, or accretive deal activity. We see potential upside to 2H2012 EPS with solid trends for Asacol, Estrace, and the Loestrin franchise supporting revenues, and as the implied second-half spending guidance seems conservative relative to the first-half. However, near-term upside potential does not translate to the long term, with our estimates for 2013 and beyond falling below consensus..."

Waterman did note that the company's $4/share special dividend did reinforce a commitment to shareholders, but, this is still a 'show me' stock.

For an analyst ratings summary and ratings history on Warner Chilcott click here. For more ratings news on Warner Chilcott click here.

Shares of Warner Chilcott closed at $17.54 yesterday, with a 52 week range of $12.90-$23.28.

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