Morgan Stanley Remains Equal-Weight on Watson Pharmaceuticals

Morgan Stanley maintains its Equal-weight rating on Watson Pharmaceuticals (NYSE: WPI) as 2012-2013 guidance comes in light.

Morgan Stanley says, "2012E revenue of $5.3B is in-line with consensus, but the $5.40 midpoint of mgmt's $5.25-$5.55 is 6% below consensus' $5.76. 2012E appears conservative. Mgmt's 10% growth objective for 2013 is in-line with prior low double-digit guidance, but disappointing relative to lower-than-expected 2012E. 10% YOY growth vs. 2012E implies 2013E of $5.78-$6.11. The midpoint of $5.95 is roughly in-line with cons' $5.99, but we note that cons. has been trending down after the negative Prochieve panel vote on Fri. Jan. 20."

WPI closed at $57.21 a share on Friday