Credit Suisse Reiterates Outperform, Raises Price Target On Diplomat Pharmacy On Strong 4Q Results

In a report published Tuesday, Credit Suisse analyst Glen Santangelo reiterated an Outperform rating on Diplomat Pharmacy, Inc. DPLO, and raised the price target from $29.00 to $37.00. In the report, Credit Suisse noted, "DPLO reported F4Q EPS of $0.08 vs FactSet consensus of $0.06. The quarter was led by strong revenues and margins, both coming in slightly better than expected. In addition to discussing the quarterly results, management used the call to reiterate its thesis on specialty infusion and discuss the decision to acquire specialty infusion player BioRx (announced 2/26). The solid F14 results combined with the acquisition laid the foundation for impressive F15 guidance. The company guided revenue, EBITDA and EPS all above the consensus estimates, although we do not believe this is an apples-to-apples comparison as we doubt the consensus estimate had time to fully incorporate the BioRx deal from last week. We appreciate the shares were up ~23% in the last three trading sessions and expectations were quite high post the announcement of the deal, and accordingly do not expect much of a reaction off these results. Given DPLO's enviable position in the pharma supply channel, and the opportunity to continue to grow at rates much faster than industry growth levels, we expect the shares to continue to outperform with the only impediment being valuation." Diplomat Pharmacy closed on Monday at $31.53.