Deutsche Cuts Price Target on Medicis (MRX) But Remains Bullish
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Price: $71.06 -1.8%
Rating Summary:
10 Buy, 11 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank is reaffirming its Buy rating on shares of Medicis (NYSE: MRX), but is lowering its price target from $44 to $41.
The firm remains bullish on the stock as management reported that its Solodyn coverage now reaches 64 percent of insurable lives in the US, just 11 percent away from the company's target of 75 percent.
Deutsche believes the company will be able to generate and sustain 12 percent earnings growth over the long-term. The growth largely reflect strong demand for its acne and aesthetics brands, more accretive acquisitions, and the company's solid pipeline.
"All we can assume is either they are being overly cautious or the Solodyn managed care discussions did not go as well as planned," reports an analyst at Deutsche, "With what we believe are now fairly conservative assumptions, we are still modeling above-guidance EPS growth of 13.5% in 2012."
For FY11, the firm is currently forecasting EPS of $2.41 on $719.7 million in total sales. Deutsche estimates earnings of $2.73 per share for FY12 on $848.6 million in sales.
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 remains bullish on the stock as management reported that its Solodyn coverage now reaches 64 percent of insurable lives in the US, just 11 percent away from the company's target of 75 percent.
Deutsche believes the company will be able to generate and sustain 12 percent earnings growth over the long-term. The growth largely reflect strong demand for its acne and aesthetics brands, more accretive acquisitions, and the company's solid pipeline.
"All we can assume is either they are being overly cautious or the Solodyn managed care discussions did not go as well as planned," reports an analyst at Deutsche, "With what we believe are now fairly conservative assumptions, we are still modeling above-guidance EPS growth of 13.5% in 2012."
For FY11, the firm is currently forecasting EPS of $2.41 on $719.7 million in total sales. Deutsche estimates earnings of $2.73 per share for FY12 on $848.6 million in sales.
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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