Needham & Company Upgrades Sagent Pharmaceuticals (SGNT) to Buy; Compelling Re-Entry Ahead of Expected 2H Growth

Needham & Company upgraded Sagent Pharmaceuticals (NASDAQ: SGNT) from Hold to Buy with a price target of $25.00.

Analyst, Elliot Wilbur, said, "We are upgrading SGNT to Buy as we believe shares’ marked underperformance YTD vs. generic peers and the broader market affords a compelling entry point ahead of expected 2H12 growth inflection. Though shares have retreated sharply (40%) over the past 12 months (vs +2% for the S&P 500) following the post-IPO sugar-high, we believe underperformance is reflective of inability to exceed numbers expectations premised on greater predictive precision around timing of new generic approvals than has materialized, coupled with valuation levels reflective of acquisition multiples for injectable franchises that left little room for error, rather than on a fundamental flaw in SGNT’s business model or significant execution missteps."

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 $18.18 yesterday.

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