UPDATE: Cantor Fitzgerald Downgrades Obagi Medical Products from Buy to Hold
Cantor Fitzgerald downgraded Obagi Medical Products (NASDAQ: OMPI) from a Buy to a Hold rating and maintained a $15 price target.
Cantor Fitzgerald wrote, “Obagi reported GAAP revenues of $30.5M and EPS of $0.18 vs. consensus estimates of $30.4M and $0.14. Revenue expectations were met due to a one-time channel fill of a newly launching product in Japan while earnings were boosted due to delayed spending on the e- pharmacy initiative and lower COGS. Mgmt. maintained full year guidance of $119-124 million and $0.58-0.62 and introduced 3Q:12 guidance of $27.5-28.5 million and $0.12-0.13 EPS. We have taken down numbers slightly due to lower- than-expected NuDerm sales (still lagging from the TX disruption) and back- loaded more SG&A expense.”
Obagi Medical Products closed at $15 on Thursday.
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