Standpoint Research Upgrades Endo Pharmaceuticals Holdings Inc (ENDP) to Buy
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Price: $0.29 --0%
Rating Summary:
14 Buy, 15 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
14 Buy, 15 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Standpoint Research upgraded Endo Pharmaceuticals Holdings Inc (NASDAQ: ENDP) from Hold to Buy with a $55 price target.
The firm states, "We are reinstating ENDP. We dropped ENDP at $38.86 on April 1, 2011 and locked in a 71% gain on the position. ENDP announced its $2.9 bln acquisition of AMMD on April 11, 2011. We liked this move, but did not want to chase the stock as it rose to $44 on the news. The shares have since pulled back (12%) to where they were when we made the downgrade, but estimates for next year are now at $5.31 versus $4.65 as the acquisition is accretine. So, even though the price is where it was when we made the downgrade, the valuation is more attractive and the risk is reduced as the company has diversified away from pain relief. This deal will decrease ENDP reliance on Lidoderm sales -- Lidoderm will now make up less than 30% of sales and this would be down from > 45% in 2010."
For more ratings news on Endo Pharmaceuticals Holdings Inc click here and for the rating history of Endo Pharmaceuticals Holdings Inc click here.
Shares of Endo Pharmaceuticals Holdings Inc closed at $38.79 yesterday.
The firm states, "We are reinstating ENDP. We dropped ENDP at $38.86 on April 1, 2011 and locked in a 71% gain on the position. ENDP announced its $2.9 bln acquisition of AMMD on April 11, 2011. We liked this move, but did not want to chase the stock as it rose to $44 on the news. The shares have since pulled back (12%) to where they were when we made the downgrade, but estimates for next year are now at $5.31 versus $4.65 as the acquisition is accretine. So, even though the price is where it was when we made the downgrade, the valuation is more attractive and the risk is reduced as the company has diversified away from pain relief. This deal will decrease ENDP reliance on Lidoderm sales -- Lidoderm will now make up less than 30% of sales and this would be down from > 45% in 2010."
For more ratings news on Endo Pharmaceuticals Holdings Inc click here and for the rating history of Endo Pharmaceuticals Holdings Inc click here.
Shares of Endo Pharmaceuticals Holdings Inc closed at $38.79 yesterday.
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