UPDATE: Stifel Nicolaus Raises PT on Endo Health Solutions Following Opana ER Setback, Management Reshuffling

In a report published Thursday, Stifel Nicolaus analyst Annabel Samimy reiterated a Buy rating on

, and raised the price target from $36.00 to $40.00. In the report, Stifel Nicolaus noted, “Following May's Opana ER setback and management reshuffling, Endo announced much-awaited streamlining plans under new CEO Da Silva. Notably, Endo plans to reduce Opex by $325mn (-32%), sell/divest Healthtronics, refocus R&D on late-stage development, execute accretive acquisitions, and pursue a lean operating model. At 2.5x debt/ebitda (3.75x threshold), Endo sees 2-3 accretive deals in the $250-500mn range within 12-18 months. Management reduced 2013 revenue guidance to $2.65-2.8bn (from $2.68-2.83bn), but increased EPS guidance to $4.10-4.40 (from $3.85-4.15). De Silva clearly delineated his vision of transforming Endo into streamlined, decentralized and focused organization. We believe expectations have been reasonably set, and look for realization of cost synergies and business development to achieve EPS targets.” Endo Health Solutions closed on Wednesday at $35.96.