Leerink Partners Cuts Price Target on Endo Int'l (ENDP) Following 4Q Earnings Report
Leerink Partners maintained an Outperform rating on Endo International plc (NASDAQ: ENDP), and cut the price target to $51.00 (from $64.00), following the company's 4Q earnings report. ENDP generics were unfavorably impacted by increased pricing pressure in pain and commodity products within legacy Qualitest, an issue seen with peers like MNK.
Analyst Jason Gerberry commented, "We are lowering our ests. after a disappointing 4Q, highlighted by generic pricing pressure & '16 outlook calling for higher spend. The 4Q print and guide were low quality, with lower than forecast tax expense helping to preserve the optics of ENDP meeting consensus expectations. While the qtr has further shaken investor confidence on ENDP's strategic bet on the US generics space, we believe pricing pressure is limited to small pockets of ENDP's portfolio and see the stock as having significant upside after today's selloff. We would expect ENDP to trade at a ~7.5x multiple of our $6.74 '17E EPS, which is lower than peers reflecting an est. ~$1/shr contribution from nonrecurring 180-day exclusive Gx's. Our updated PT is $51 (from $64)."
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Shares of Endo International plc closed at $41.81 yesterday.