DepoMed (DEPO) Sell-Off an 'Over-Reaction', Roth Capital Says; PT to $28.50

Roth Capital analyst Scott Henry trimmed his price target on DepoMed Inc (NASDAQ: DEPO) to $28.50 (from $30.00) following Q1 results but maintained a Buy rating. The firm views today's 18% sell-off as a "over-reaction."

Henry commented, "DEPO reported 1Q15 results that were at the lower end of our expectations. The important 2015 guidance matched our revenue targets, but SG&A spending guidance was above our forecast. This reduced our EPS by ~$0.15 in out years, and motivated a $1.50/share reduction to our price target. We view the current share price decline as an over-reaction, and look for Nucynta prescriptions to turn momentum positive again. Reiterate Buy rating."

For an analyst ratings summary and ratings history on DepoMed Inc click here. For more ratings news on DepoMed Inc click here.

Shares of DepoMed Inc closed at $24.41 yesterday.

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