Collins Stewart Starts Sagent Pharmaceuticals (SGNT) at Buy; Potential Earnings Upside is Underappreciated

Collins Stewart initiates coverage on Sagent Pharmaceuticals (NASDAQ: SGNT) with a Buy. PT $25.00.

Collins analyst says, "Our investment thesis in SGNT is threefold: (1) SGNT is well positioned to capture a substantial share (by volume) of generic injectable drugs in the US and potentially in China longer term. (2) There are many potential sources of earnings upside to consensus expectations. These could be driven by vertical integration, new product and/or smaller company acquisitions, the approval and launch of additional drugs on the FDA shortage list and the launch of new drugs out of SGNT’s KSP facility in China. We estimate the launch of critical shortage drugs could potentially add $225MM+ in sales and contribute $1.80+ in EPS annually for SGNT. And, (3) SGNT’s CEO, Jeff Yordon, has a demonstrated record of success."

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 $21.12 yesterday.

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