Oppenheimer Remains Sidelined as Endo Int'l (ENDP) Shares Trade Down

Oppenheimer reiterated a Perform rating on Endo International plc (NASDAQ: ENDP) as shares trade down following Valeant's announcement that it was reducing its guidance. Endo management also announced a 1Q16 guidance revision. Management slightly decreased 1Q revenue guidance to ~21-22% of FY16 total revenues, and outlined sales of ~$928-$972M (vs. prior ~22% of FY16/consensus of ~$999M). Consultant checks indicate that a competitive Voltaren gel product may be imminent. Oppenheimer believes the competitor to be Amneal, although the approval is not yet listed on the FDA website.

Analyst Rohit Vanjani commented, "Shares of Endo have traded down ~29% since 3/15/16 (vs. the S&P 500 +1.5%), in sympathy with Valeant announcing that it was reducing its guidance. Adding to Endo's uncertainty last week was the company's 1Q16 guidance revision and the guidelines release by the CDC for prescribing opioids. While we believe the concerns about Valeant are overdone, Endo did comment that it continues to see softness in Qualitest. Additionally, we have learned that a generic competitor may be imminent for Voltaren gel. The product is not yet listed by the FDA, and we are not changing our Voltaren estimates at this time. We note that the first generic competitor could grab a 30-50% share of the market in short order."

For an analyst ratings summary and ratings history on Endo International plc click here. For more ratings news on Endo International plc click here.

Shares of Endo International plc closed at $29.84 yesterday.

You May Also Be Interested In

• Viking Holdings (VIK) PT Raised to $82 at Mizuho
• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Deere (DE) PT Raised to $585 at JPMorgan