UPDATE: Goldman Sachs Reinstates Coverage on Warner Chilcott with Neutral Rating, $19 PT
In a report published Wednesday, the Goldman Sachs Group reinstated coverage on Warner Chilcott (NASDAQ: WCRX) with a Neutral rating and a $19.00 price target.
Goldman Sachs noted, “We believe WCRX valuation remains undemanding, but greater upside will depend on improved product trends, increased pipeline visibility, or accretive deal activity. We see potential upside to 2H2012 EPS with solid trends for Asacol, Estrace, and the Loestrin franchise supporting revenues, and as the implied second-half spending guidance seems conservative relative to the first-half. However, near-term upside potential does not translate to the long term, with our estimates for 2013 and beyond falling below consensus on a more conservative ramp for Atelvia and the inclusion of a risk adjustment for Asacol given exclusivity uncertainty after a key patent expires in 2013.”
Warner Chilcott closed on Tuesday at $17.54.
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