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Analysts at Morgan Stanley initiate coverage of Warner Chilcott (NASDAQ: WCRX) with an “overweight” rating. The target price for WCRX is set to $32.
According to Morgan Stanley, the market seems to under-appreciate WCRX’s growth potential. Warner Chilcott is likely to exceed the market expectations for its 2010-2012 EPS. Asacol and Actonel would be converted into versions with longer patent lives.
Morgan Stanley expects WCRX’s SG&A expenses to decline during 2015, as the Sanofi co-promotion agreement ends. The company is likely to witness 10% EPS growth during 2010-2013 and a five-year growth of 4%. The FCF yield for the company for 2010 is forecasted to be 13%.
this stock is up and still moving based on the good news. Hope it reached $32 much sooner than anticipated
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