Piper Jaffray: Horizon Pharma Still Has Room For Value Creation, Target Hiked To $48

In a report published Tuesday, Piper Jaffray analyst David Amsellem maintained an Overweight rating on

, while raising the price target from $38 to $48, after the company raised its 2015 guidance. Horizon Pharma preannounced its 2Q15 net sales in the range of $170M-$172M, significantly beating the consensus estimate of $140M. The company raised its 2015 guidance ranges for net sales and EBITDA from $590M-$610M to $660M-$680M and from $235M-$250M to $265M-$280M, respectively. While stating that the guidance revision was "not a surprise," analyst David Amsellem explained, "The strong prescription (Rx) volume trajectory for Pennsaid 2% in our view could easily explain a significant chunk of the upward revisions (we estimate that sales are annualizing to as high as $180M+)." Amsellem added that the new guidance left "room for further upside" from other key top-line drivers as well. "Other products that are run through HZNP's Prescriptions Made Easy (PME) alternate fulfillment framework, namely Duexis and Vimovo, appear to be resilient despite well-documented payor headwinds." According to IMS, Duexis, Vimovo and Rayos recorded sequential quarterly Rx growth in 2Q15 of 63 percent, 47 percent and 89 percent, respectively. The EPS estimates for FY15 and FY16 have been raised from $1.43 to $1.52 and from $2.04 to $2.29, respectively. "Longer-term, an EPS CAGR over the next 3-4 years that is north of 25% is realistic," the report added.