UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on Actavis

In a report published Monday, Goldman Sachs reiterated its Neutral rating on Actavis

, but lowered its price target from $96.00 to $94.00. Goldman Sachs noted, “We attended Actavis's (Watson's) investor meeting and came away with a greater appreciation for how ACT will evolve from a company mostly focused on generics to one driven by specialty pharma (brands, biosimilars). ACT has benefited from strong earnings growth over the past few years on the back of FTF opportunities and most recently, the Actavis acquisition in the generics space. However, longer-term (2015+) generic growth alone may not be enough to sustain management's goal of double digit earnings growth given the maturation of the global generic industry. Our models forecast 36% EPS growth this year, 14% in 2014 and mid single digits from 2015-17. Moving into brands, which we believe is likely the correct long term strategy, will take time, investments, and risk (R&D for a pharma company is significantly above ACT's current spend of 7% of sales).” Actavis closed on Friday at $84.27.