UPDATE: Goldman Sachs Downgrades Watson Pharmaceuticals to Neutral on Limited Upside

Goldman Sachs downgraded Watson Pharmaceuticals, Inc.

from Buy to Neutral and lowered the price target from $100.00 to $96.00. Goldman Sachs noted, "We downgrade WPI to Neutral from Buy and lower our 12-month price target to $96 from $100, as we believe the upside case to 2013 EPS guidance is less likely with the recent approval of COV's generic Concerta. WPI was one of the top healthcare performers in 2012, up 43% vs. the S&P up 13%, driven in large part by the Actavis deal. While we continue to view WPI as a core generic holding, its balance sheet is tapped out for now, and with the generic business maturing WPI will likely have to make another large acquisition to achieve double-digit growth post 2014." Watson Pharmaceuticals closed at $87.99 on Thursday.