Jefferies Cuts Target to $60 on Watson Pharmaceuticals

Jefferies reiterates its Hold rating on Watson Pharmaceuticals WPI and lowers its price target by $10 to $60 on a largely disappointing outlook presented at the company's analyst day. Jefferies says, "At its analyst day, WPI provided a '12 EPS outlook that largely disappointed, but more importantly for us, '13 guidance of ~10% growth (a year of tough comps, given gx Lipitor loss) was reassuring. We now raise '13 EPS to $5.98 (vs. our prior $4.22), but note that we're only there due to formal guidance. WPI seems to have the pieces to grow in 2013, but since it is still not 100% obvious to us how WPI gets there, we maintain our Hold." WPI closed at $55.89 a share on Tuesday.