Leerink Partners Cuts Price Target on Endo Int'l (ENDP) to $37; Reiterates Outperform

Leerink Partners maintained an Outperform rating on Endo International plc (NASDAQ: ENDP), and cut the price target to $37.00 (from $51.00), following a rough start to 2016. Recently, management reduced 1Q guidance, citing price pressure to legacy Qualitest generic unit. However, ENDP re-affirmed FY16 guidance.

Analyst Jason Gerberry commented, "ENDP is primarily a US generics business combined with a small specialty brand segment. The stock trades at <4.5x its 2017E FactSet cons. reflecting buyside concerns around EPS durability, given '17 ests include significant contribution from non-recurring sources and stale cons. ests that haven't been updated for competitor generic approvals. While 1Q script trends and Belbuca (pain) launch uptake both look soft, we believe these issues are well understood. For ENDP, the business isn't broken and we expect the stock to re-rate on execution against important operational imperatives, including 2H brand launches and stabilization of the base generic biz. Our '17E EBITDA after backing out non-recurring items is still $2B, which at a multiple of 8.5x equals $37."

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 $29.23 yesterday.

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