Wells Fargo Cuts Valuation Range on Medicis (MRX), Remains Slightly Bearish on Stock
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Price: $71.45 +0.55%
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Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
10 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Wells Fargo is maintaining its Market Perform rating on shares of Medicis (NYSE: MRX), while lowering its price valuation range from $35-$38 to $33-$36.
The firm reports, managements plan to expand care access of Solodyn is a strategic long-term plan, but entail will have a short term effect earnings. The company currently provides access to 64 percent of insurable lives in the U.S. and looks to boost that number to 75 percent by 2012.
For Q4 and FY11, Wells Fargo cut its EPS estimates from $0.70 and $2.55 to $0.54 and $2.39. The firm also lowered its Q4 and FY11 sales estimates from 195.7 million and $736.1 million to $178.7 million and $719.1 million.
Wells Fargo also reduced its FY12 and FY13 EPS estimates from $2.88 and $3.28 to $2.76 and $3.16.
Management has repurchased roughly 4.4 million shares for around $150 million under its current 200 million buyback plan. The firm believes the company will initiate another buyback plan as soon as the current one is completed.
Ana analyst at Wells Fargo comments, "We see significant potential in the facial aesthetic Dysport/Restylane combination, and note a solid cash position for the pursuit of acquisitions. However, we see a potential overhang in the possibility of a near term downward guidance revision and await evidence that MRX can translate strong Dysport/Restylane unit growth into EPS growth."
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 $33.76 yesterday.
The firm reports, managements plan to expand care access of Solodyn is a strategic long-term plan, but entail will have a short term effect earnings. The company currently provides access to 64 percent of insurable lives in the U.S. and looks to boost that number to 75 percent by 2012.
For Q4 and FY11, Wells Fargo cut its EPS estimates from $0.70 and $2.55 to $0.54 and $2.39. The firm also lowered its Q4 and FY11 sales estimates from 195.7 million and $736.1 million to $178.7 million and $719.1 million.
Wells Fargo also reduced its FY12 and FY13 EPS estimates from $2.88 and $3.28 to $2.76 and $3.16.
Management has repurchased roughly 4.4 million shares for around $150 million under its current 200 million buyback plan. The firm believes the company will initiate another buyback plan as soon as the current one is completed.
Ana analyst at Wells Fargo comments, "We see significant potential in the facial aesthetic Dysport/Restylane combination, and note a solid cash position for the pursuit of acquisitions. However, we see a potential overhang in the possibility of a near term downward guidance revision and await evidence that MRX can translate strong Dysport/Restylane unit growth into EPS growth."
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 $33.76 yesterday.
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