Gabelli's $52 Price Target Calls for 67% Upside on Hospira (HSP), Attractive Buying Opportunity
Tweet
Share
E-mailGet Alerts HSP Hot Sheet
Price: $89.95 --0%
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
Gabelli is reiterating its Buy rating and $52 price target on shares of Hospira (NYSE: HSP) following a 40 percent decline in the stock over the past 4 months.
The firm notes the decline is due to quality control problems to both sides of the business that first surfaced in 2010. While the problems are suspected to last into 2012, Gabelli believes that now is an attractive buying opportunity.
In October management announced earnings results below expectations and cut its guidance for the full year. The company's total market cap fell $1.3 billion following the release, which Gabelli indicates limits further downside from an earnings decline in 2012.
The firm believes 2013 will be the year of growth after earnings trough at $2.60 per share in 2012. Gabelli forecasts earnings growth of 17 CAGR for 2013-2015 following such low 2012 earnings levels.
An analyst at Gabelli comments, "Biosimilars, generic versions of biologic drugs, will be a significant growth driver to the generics industry in 2015 and beyond. These drugs require extensive R&D investments and injectable capabilities, creating barriers to entry for many generic drug companies. Hospira already has two biosimilar products available in Europe and is making the necessary investments today to be a leader as this market emerges over the next decade."
Gabelli estimates earnings of $3.00 for FY11, $2.60 for FY12, and $3.10 for FY13.
For an analyst ratings summary and ratings history on Hospira click here. For more ratings news on Hospira click here.
Shares of Hospira closed at $30.98 yesterday.
The firm notes the decline is due to quality control problems to both sides of the business that first surfaced in 2010. While the problems are suspected to last into 2012, Gabelli believes that now is an attractive buying opportunity.
In October management announced earnings results below expectations and cut its guidance for the full year. The company's total market cap fell $1.3 billion following the release, which Gabelli indicates limits further downside from an earnings decline in 2012.
The firm believes 2013 will be the year of growth after earnings trough at $2.60 per share in 2012. Gabelli forecasts earnings growth of 17 CAGR for 2013-2015 following such low 2012 earnings levels.
An analyst at Gabelli comments, "Biosimilars, generic versions of biologic drugs, will be a significant growth driver to the generics industry in 2015 and beyond. These drugs require extensive R&D investments and injectable capabilities, creating barriers to entry for many generic drug companies. Hospira already has two biosimilar products available in Europe and is making the necessary investments today to be a leader as this market emerges over the next decade."
Gabelli estimates earnings of $3.00 for FY11, $2.60 for FY12, and $3.10 for FY13.
For an analyst ratings summary and ratings history on Hospira click here. For more ratings news on Hospira click here.
Shares of Hospira closed at $30.98 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Growth isn't weak enough to truly undercut inflation pressures - BMO
- Wipro (WIT) Tops Q1 EPS by 1c
- Warren Buffet's Berkshire stock target raised at UBS into earnings
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
EarningsSign 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!
