UPDATE: Stifel Nicolaus Cuts PT to $19 on InterMune on Esbriet Pre-Announcement

Stifel Nicolaus reiterated its Buy rating on InterMune ITMN but lowered its price target from $22 to $19. Stifel Nicolaus commented, "Our 12-month target price of $19/share (previously $22/share) is based on the midpoint of our P/E multiple (25x our FY17E fully-taxed/diluted non-GAAP EPS estimate of $1.83 discounted at 20%-25%/year) and DCF-based methodologies. Our current estimates/valuation continue to assume Esbriet sales in Europe-only (but include U.S. development costs) and our probability-adjusted U.S. sales estimates (peak sales of >$1 billion) generate an additional $30+ per share of DCF-based optionality that remains excluded from our model." InterMune closed at $10.46 on Thursday.