Wells Fargo Downgrades Watson Pharmaceuticals (WPI) to Market Perform; Distant Next Catalyst; Substantial NT Opportunities Priced In

Wells Fargo downgraded Watson Pharmaceuticals (NYSE: WPI) from Outperform to Market Perform. Valuation Range: $60-$64.

Wells analyst says, "WPI remains a well run company with significant opportunities (including gConcerta and gLipitor) in 2011. We think those opportunities are substantially reflected in the current share price and that meaningful upward moves could require an additional catalyst. Such catalysts include exclusive launch of gLipitor, first cycle expedited Prochieve approval, accretive acquisitions and gConcerta upside, but could take several months to emerge. Meanwhile, early formation of a gLipitor market could represent a negative. In our opinion, the gConcerta and gLipitor opportunities should support the stock in the near term, but we think shares could remain range bound ahead of meaningful catalysts in H2 2011 and beyond."

For more ratings news on Watson Pharmaceuticals click here and for the rating history of Watson Pharmaceuticals click here.

Shares of Watson Pharmaceuticals closed at $61.73 yesterday.

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