Credit Suisse Maintains an 'Outperform' on Watson Pharmaceuticals (WPI); Raising Estimates and Target Price on Specifar Acquisition

Credit Suisse maintains an 'Outperform' on Watson Pharmaceuticals (NYSE: WPI), PT increased from $72 to $75.

Credit Suisse analyst says, "We are raising our target price after a more detailed review of the Specifar acquisition following our "Initial Impressions" note on May 25. We believe that the deal has significant strategic and financial merit, and preserves leverage capacity for future deals...Three key strategic benefits to the acquisition: (1) adds a high-margin, pan-European 3rd party generics development business with a diversified product portfolio; (2) provides revenue and cost synergy opportunities; and (3) brings substantial manufacturing capacity which could enhance gross margins by enabling faster integration of externally manufactured acquired products. Such gross margin expansion would be upside to our estimates."

"Estimate revisions: our EPS estimates are increased as follows-2011 from $4.25 to $4.36, 2012 from $5.47 to $5.71, and 2013 from $5.90 to $6.20."

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 $63.99 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)