Piper Jaffray Downgrades Impax Laboratories (IPXL) to Neutral

Piper Jaffray downgraded Impax Laboratories (NASDAQ: IPXL) from Overweight to Neutral with a price target of $31.00 (from $35.00) following Q3 results and several question marks.

Analyst David Amsellem comments, "IPXL reported diluted EPS of $0.33, just north of the Street estimate. With IPXL using up its cash position (which had provided some downside protection) for the recently announced Tower/Lineage acquisitions, we would now view the company as an execution and growth story (i.e., a major accretive deal is now in the rear-view mirror). In that vein, there are in our view real question marks regarding the prospects for significant longer-term organic earnings growth. With IPXL now trading at a 2015 P/E of 21x our 2015 EPS estimate of $1.44 (reflecting the impact of Tower/Lineage), we are taking a more cautious view of the shares, particularly ahead of the January 2015 FDA action on Rytary (and ahead of clarity on the results of quality control efforts at the Hayward, CA and Taiwan facilities)."

The firm trimmed FY 2014 EPS from $1.35 to $1.29 and raised FY 2015 EPS from $0.53 to $0.72.

For an analyst ratings summary and ratings history on Impax Laboratories click here. For more ratings news on Impax Laboratories click here.

Shares of Impax Laboratories closed at $29.34 yesterday.

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