S&P Capital IQ Reiterates its BUY Rating on Endo Pharmaceuticals, Target Price Reduced

October 28 00:00 2011

New York, October 28 (RainbowNewsLine.com) – Analyst Steven Silver of S&P Capital IQ reiterates his BUY rating on the shares of Endo Pharmaceuticals (NASDAQ: ENDP), while raising his estimates for the company. The target price has been reduced from $50 to $46.

Analyst Steven Silver, in a research note published yesterday mentions that the company has reported its Q3 EPS ahead of the estimates, driven by lower R&D costs and tax rate. According to the analyst, revenues grew 71%, reflecting large recent acquisitions diversifying its business. FDA approval of tamper resistant formulation of pain drug Opana ER in December will act as a catalyst, but integration risk and higher debt load are viewed as near-term overhangs, the analyst adds. The EPS estimate for 2011nad 2012 have been raised from $4.55 to $4.62 and from $5.30 to $5.14, respectively.