UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Viropharma
In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Viropharma (NASDAQ: VPHM), and raised its price target from $25.00 to $30.00.
J.P. Morgan noted, “Coming out of ViroPharma's investor day late last week, we are comfortable that the company is making solid / steady progress both on the commercial and pipeline front. Investors should see meaningful leverage to the bottom-line over time and potentially additional share buy backs via the recently authorized $200M to optimize capital structure, both of which are positives. However, biotech is still a sector that trades heavily on top-line results. We believe 2015 total revenue guidance of $700-800M assumes fairly hefty growth for the IV Cinryze, Buccolam, and Plenadren franchises, which compete in disease markets that still require substantive disease education. Indeed, we do not see an inflection growth driver in the near term (we are slightly below the lower end of 2015 revenue guidance at ~$660M; cons: ~$688M). As such, we are reiterating our Neutral rating on VPHM shares (increasing Dec 2013 PT to $30 from $25).”
Viropharma closed on Friday at $30.31.
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Tags: J.P. Morgan & Co.