Citi Sees Around 20% Upside In Watson Pharmaceuticals (WPI)

Citi Investment Research has a Buy rating and a $59 price target on Watson Pharmaceuticals, Inc. WPI, a near 20% upside to where shares closed on Friday. In a note sent to investors, Citi writes, "Branded sales of $100M were down -12% due to the loss of Ferrlecit at YE'09. Generic sales were driven by 3rd full qtr of Arrow & multiple high value sustained release launches in the past 12 months [CardizemLA(3/10),ToprolXL 100 /200mg (4/10)]. WPI's int'l sales accounted for 11.6% of 3Q10 sales (down from 12.6% in 2Q10) vs. 39% for Teva & 49% for MYL. We expect a low impact from FX headwind in 4Q10." Shares of WPI lost 29 cents on Friday to close at $50.25, a loss of 0.6%.