UPDATE: Canaccord Genuity Reiterates Buy Rating, Lowers PT on Hi-Tech Pharmacal Co. on F3Q EPS Miss

In a report published Friday, Canaccord Genuity reiterated its Buy rating on Hi-Tech Pharmacal Co.

, but lowered its price target from $42.00 to $40.00. Canaccord Genuity noted, “HITK reported F3Q results that brought some cough-and-cold-driven revenue upside that was appropriately overshadowed by the cost-driven EPS miss. While the spend surprise was disappointing, the operational results were overall decent. Post F3Q, we have a hard time from here pointing to near-term drivers that can push the stock higher absent a deal. That said, we see a lot of potential in the platform on a combination of three things: (1) a higher barrier base business; (2) a pipeline we think can bring solid medium term P&L support; and (3) financial flexibility that can and should be used to pursue a sizable deal, which we think would bring welcome diversification from fluticasone.” Hi-Tech Pharmacal Co. closed on Thursday at $36.16.