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UPDATE: Piper Jaffray Raises PT on Obagi Medical Products, Reiterates Neutral on Uncertainty

Related OMPI
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Piper Jaffray maintained Obagi Medical Products (NASDAQ: OMPI) with a Neutral rating and raised the price target from $12 to $13.

Piper Jaffray analyst David Amsellem noted, "Obagi reported 4Q12 adjusted diluted EPS of $0.15 (including $1.7M of spending related to the ongoing build-out of the company's e-commerce platform), beating the Street estimate of $0.14. Revenues were in line with the Street, with Nu-Derm up 4% over 4Q11. The growth outlook however is murky in our view given that Allergan (via its SkinMedica unit) launched a non-hydroquinone-based skin lightening product in January 2013. Given the competitive dynamics surrounding Nu-Derm and the added expense and questionable benefits associated with the e-commerce platform in our view, we believe the outlook for sustainable longer-term earnings growth is uncertain."

Obagi Medical Products closed at $13.94 on Thursday.

Latest Ratings for OMPI

DateFirmActionFromTo
Apr 2013Cantor FitzgeraldMaintainsHold
Mar 2013Roth CapitalDowngradesBuyNeutral
Mar 2013Cantor FitzgeraldDowngradesBuyHold

View More Analyst Ratings for OMPI
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Posted-In: Piper JaffrayAnalyst Color Price Target Analyst Ratings

 

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