Canaccord Genuity Reiterates a 'Buy' on Hi Tech Pharmacal (HITK) on Sell-off Post Checks, Management Meeting
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Price: $43.49 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity reiterates a 'Buy' on Hi Tech Pharmacal (NASDAQ: HITK) price target of $45.00.
Canaccord analyst, Randall Stanicky, said, "Shares were off ~ 16% on approval of a competitor to Hi-Tech’s fluticasone. While our forecasts reflected competition and there had long been speculation of a competitor coming, we didn’t expect it this quickly and the timing is clearly frustrating on several levels in clipping what could have been continued EPS upside. From here, investor trepidation near term around the stock is understandable and expected pending better visibility on impact, but our early checks indicate it as manageable and likely less severe than many expect."
"Several things to focus on from here. (1) How much share Wockhardt is after – we believe more modest 10-15%; (2) at what pricing – we understand Wockhardt is looking to be rational and do not expect a meaningful pricing hit absent irrational actions by other generic competitors; (3) other potential FDA approvals near term, which does not appear to be the case based on our checks. Launch comes in seasonally strong early year which should help absorb volume."
For an analyst ratings summary and ratings history on Hi Tech Pharmacal click here. For more ratings news on Hi Tech Pharmacal click here.
Shares of Hi Tech Pharmacal closed at $35.31 yesterday.
Canaccord analyst, Randall Stanicky, said, "Shares were off ~ 16% on approval of a competitor to Hi-Tech’s fluticasone. While our forecasts reflected competition and there had long been speculation of a competitor coming, we didn’t expect it this quickly and the timing is clearly frustrating on several levels in clipping what could have been continued EPS upside. From here, investor trepidation near term around the stock is understandable and expected pending better visibility on impact, but our early checks indicate it as manageable and likely less severe than many expect."
"Several things to focus on from here. (1) How much share Wockhardt is after – we believe more modest 10-15%; (2) at what pricing – we understand Wockhardt is looking to be rational and do not expect a meaningful pricing hit absent irrational actions by other generic competitors; (3) other potential FDA approvals near term, which does not appear to be the case based on our checks. Launch comes in seasonally strong early year which should help absorb volume."
For an analyst ratings summary and ratings history on Hi Tech Pharmacal click here. For more ratings news on Hi Tech Pharmacal click here.
Shares of Hi Tech Pharmacal closed at $35.31 yesterday.
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