Needham & Company Maintains a 'Hold' on Sagent Pharmaceuticals (SGNT); Impressive Q4, But Shares Fairly Valued

Needham & Company maintains a 'Hold' on Sagent Pharmaceuticals (NASDAQ: SGNT).

Analyst, Elliot Wilbur, said, "SGNT again delivered impressive top-line performance growth metrics in 4Q11 with sales increasing 44%. After a couple of near misses on top-line performance over the past two quarters, SGNT appears to have shaken the expectations monkey as 4Q11 top-line managed to easily outdistance expectations. While gross margin progression is tracking below current estimates, gap between expectations and reality is rapidly converging and 2012 guidance appears conservative enough in terms of new product launch cadence so as to skew likely deviations from expectations to the upside."

"While 4Q11 actuals and downward drift in shares since year-end certainly suggests that valuation no longer embeds a near optimal organic growth case with little room for error, we continue to believe reward/risk scenarios are more compelling at share price levels under the $20 mark."

Needham lowers FY12 EPS estimate from $0.29 to (0.14) and FY13 from $1.68 to $1.52.

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

Shares of Sagent Pharmaceuticals closed at $21.99 yesterday.

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