Cantor Fitzgerald Reiterates a 'Sell' on Ironwood Pharmaceuticals (IRWD); Shares Still Overvalued

Cantor Fitzgerald reiterates a 'Sell' on Ironwood Pharmaceuticals (NASDAQ: IRWD) price target of $8.00.

Analyst, Irina Rivkind, said, "We already incorporated assumptions for 2012 Linzess (linaclotide) approval in our numbers for both Ironwood and partner Forest (assume load-in revenues of $10M for 4Q:12). We do model global pediatric revenues beginning in 2015 which now appear to be at risk (we estimated ~$550M of $3.8B at peak) since management could not guide to pediatric label expansion timing and must first submit FDA-imposed preclinical safety trials by the end of 2013. We are leaving these in for now. We also increased our estimates for Forest (NYSE: FRX) rep headcount. We still think the stock is overvalued given the expected increase in promotional expenses, without corresponding profitability until 2019."

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

Shares of Ironwood Pharmaceuticals closed at $12.42 yesterday.

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