UBS Maintains a 'Neutral' on Medicis (MRX); The Graceway Bandaid

UBS maintains a 'Neutral' on Medicis (NYSE: MRX) price target cut from $39 to $34.

UBS analyst says, "Our takeaway: It’s difficult to be excited about this deal - We believe mgt did this deal to fill in the Solodyn hole and enable the co to deliver its goal of at least low teens EPS growth next year. We est Graceway adds ~$0.66 in 2012. However, we are also taking this opportunity to lower our Solodyn sales forecasts in the out years (eg, from $435M to $355M in 2012), but we have also added an extra $50M of sales in 2015 (now include $100M) from undisclosed pipeline prods. And we are moving to cash EPS and are now excluding Graceway amortization as well as $0.18 of amortization that used to be expensed each yr."

UBS lowers FY11 EPS estimate from $2.41 to $2.37, but raises FY12 from $2.85 to $2.95.

For an analyst ratings summary and ratings history on Medicis click here. For more ratings news on Medicis click here.

Shares of Medicis closed at $31.84 yesterday.

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