Endo International plc (ENDP) PT Slashed to $25 at Stifel; 'Buy' Maintained

Stifel analyst Annabel Samimy slashed its price target on Endo International plc (NASDAQ: ENDP) to $25.00 (from $75.00) but maintained a Buy rating. 2016 guidance implies aggressive cuts, accorinng to the firm.

Samimy commented, "Yesterday, we met with ENDP management where we covered assumptions behind the recent rebasing of guidance and risks to the remaining 2016 outlook. Recall, ENDP aggressively reset guidance with 1Q16 results, reflecting greater-than-expected erosion in Legacy Qualitest, delays in FDA actions on 505(b)(2) products, and earlier V-Gel generic entry. Within Generics, we believe that ENDP has taken sufficiently aggressive cuts to the commoditized segment of the franchise, with offset from the 25-30 ANDAs expected this year, which includes high-value, sterile injectables and new alternative dosage formulations, such as Zetia and Seroquel (preparations underway for on-time 4Q16 launch). We also believe the Branded outlook is modest, with growth primarily driven by Xiaflex, a sufficiently conservative assumption around Belbuca adoption, and implicit erosion for Opana XR/Percocet given recent CDC guidelines. Of importance, ENDP remains well within its secured and interest maintenance covenants despite reduced EBITDA guidance for 2016. While ENDP has likely taken appropriately aggressive cuts in this reset, today’s share price reflects a lack of confidence, with stock recovery only on evidence of execution through these challenges. Maintain Buy, we reset TP to $25, switching to SOTP analysis."

For an analyst ratings summary and ratings history on Endo International plc click here. For more ratings news on Endo International plc click here.

Shares of Endo International plc closed at $15.17 yesterday.

You May Also Be Interested In

• Uber Inc. (UBER) PT Raised to $96 at Tigress Financial Partners
• Piper Sandler Downgrades Southwestern Energy (SWN) to Neutral
• American International Group (AIG) PT Raised to $89 at Piper Sandler