Janney Montgomery Scott Defends DepoMed (DEPO) Amid Downgrade-Related Weakness

Janney Montgomery Scott analyst Ken Trbovich came out to defend DepoMed Inc (NASDAQ: DEPO), which is down 8.5% following an early downgrade from UBS. Trbovich sees no reason to fear June data next week.

Trbovic commented, "Another firm downgraded DEPO today on what we believe is a valuation call; however, Factset distributed a headline indicating the downgrade was caused by weak prescription trends. We have previously published a report in mid-June that indicated monthly prescription trends are actually ahead of our estimates and our estimates are slightly above consensus. To be sure, we provide an analysis below regarding weekly Rx trends through the end of June. We see no meaningful change in Rx trends and have no reason to expect weakness when June monthly prescription data is released next Tuesday. We reiterate our Buy rating and $28 fair value estimate."

The firm reiterated a Buy rating and price target of $28.00

For an analyst ratings summary and ratings history on DepoMed Inc click here. For more ratings news on DepoMed Inc click here.

Shares of DepoMed Inc closed at $20.55 yesterday.

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