Needham & Company on Watson Pharma (WPI); Shares Continue Prochieve Retreat Though Key Expected 2012/13 Growth Levers Appear Largely Unchanged

Needham & Company maintains a 'Hold' on Watson Pharmaceuticals (NYSE: WPI).

Needham analyst says, "WPI’s analyst day turned out to be far less of the gala affair than years past as investors focused far more on the details of how management would achieve growth targets rather than simply betting that the company will achieve numbers. Despite ratcheting down of out-year EPS growth targets (mainly 2013), on an absolute basis, guidance is essentially exactly where it was one year ago suggesting no real change in key incremental growth levers. While sharp pullback in shares creates potentially more interesting entry point in terms of adding to positions, we believe further near-term downward estimate pressure and continued fallout from spectacular flameout of Prochieve in front of FDA advisory committee will continue to exude modest pressure on shares. Additionally, removal of Lipitor contribution ($0.77) from 2012 EPS guidance suggests 2013 targeted growth of 10% is well north of 25%, implying that launches of generic Lidoderm and/or Lovenox are more functional necessities rather than upside drivers."

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

Shares of Watson Pharmaceuticals closed at $55.89 yesterday.

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