Needham & Company Reiterates a 'Buy' on Cubist Pharmaceuticals (CBST); U.S. and International Cubicin Sales Beat Expectations
Tweet
Share
E-mailGet Alerts CBST Hot Sheet
Price: $101.94 --0%
Rating Summary:
6 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
6 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Join SI Premium – FREE
Needham & Company reiterates a 'Buy' on Cubist Pharmaceuticals (NASDAQ: CBST), PT $33.
Needham analyst says, "Cubist announced $153.7MM in 1Q11 U.S. Cubicin sales last night, above our $140MM and street $149MM expectations. The company reported GAAP EPS of $0.34, which also exceeded our expectations for $0.29. Cubist avoided the typical 6-8% Q4-Q1 seasonal decline in volume shipments with only a 5.3% decline this year. The company implemented several new marketing strategies that coincided with new IDSA MRSA treatment guidelines in 2H10, although management is not yet able to attribute this quarter’s uptick to a specific factor. Management maintained 2011 U.S. Cubicin sales guidance of $645-665MM. We are favorably inclined towards the stock. However, our positive bias is now driven more by the potential for takeout of the company (given Teva (Nasdaq: TEVA) settlement) than the long-term growth prospects for Cubicin, which we believe are modest."
"Our 2011 and 2012 GAAP EPS estimates are $0.89 (was $0.85) and $1.43 (was $1.29). Our 2011 and 2012 total revenue estimates are $708.3 (was $693.9) and $776MM (was $761.0MM), respectively, with the increase attributable primarily to expected Dificid service revenue."
For more ratings news on Cubist Pharmaceuticals click here and for the rating history of Cubist Pharmaceuticals click here.
Shares of Cubist Pharmaceuticals closed at $30.36 yesterday.
Needham analyst says, "Cubist announced $153.7MM in 1Q11 U.S. Cubicin sales last night, above our $140MM and street $149MM expectations. The company reported GAAP EPS of $0.34, which also exceeded our expectations for $0.29. Cubist avoided the typical 6-8% Q4-Q1 seasonal decline in volume shipments with only a 5.3% decline this year. The company implemented several new marketing strategies that coincided with new IDSA MRSA treatment guidelines in 2H10, although management is not yet able to attribute this quarter’s uptick to a specific factor. Management maintained 2011 U.S. Cubicin sales guidance of $645-665MM. We are favorably inclined towards the stock. However, our positive bias is now driven more by the potential for takeout of the company (given Teva (Nasdaq: TEVA) settlement) than the long-term growth prospects for Cubicin, which we believe are modest."
"Our 2011 and 2012 GAAP EPS estimates are $0.89 (was $0.85) and $1.43 (was $1.29). Our 2011 and 2012 total revenue estimates are $708.3 (was $693.9) and $776MM (was $761.0MM), respectively, with the increase attributable primarily to expected Dificid service revenue."
For more ratings news on Cubist Pharmaceuticals click here and for the rating history of Cubist Pharmaceuticals click here.
Shares of Cubist Pharmaceuticals closed at $30.36 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Downgrades Limbach Holdings (LMB) to Underweight
- Walmart (WMT) PT Lowered to $132 at DA Davidson
- Bally's Corp (BALY) PT Lowered to $11 at Macquarie
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
