Piper Jaffray Raises Price Target on Endo Int'l (ENDP) Leading up to Par Pharma Acquisition
Piper Jaffray reiterates an Overweight rating on Endo International plc (NASDAQ: ENDP), and raised the price target to $117.00 (from $110.00), leading up to the Par Pharmaceuticals acquisition. Endo plans on Acquiring Par for $8B.
Piper Jaffray analyst David Amsellem commented on Endo, saying, "Endo is dramatically expanding its generics footprint with plans to acquire Par Pharmaceuticals for approximately $8B. Though the transaction will not be immediately accretive (ENDP is guiding to double-digit EPS accretion in 2016), and though the pro forma (PF) product mix will now be more weighted towards lower margin generics (relative to brands), we do not believe P/E contraction is warranted. This is bearing in mind that Par has a deep abbreviated NDA (aNDA) pipeline (115 pending filings), with a significant focus on more complex dosage forms. The Par purchase adds further visibility to a long-term EPS CAGR for ENDP that we already thought would be in the high-teens. We reiterate our Overweight rating and are raising our PT to $117 from $110 (based on our new PF estimates)."
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Shares of Endo International plc closed at $80.77 yesterday.