Rodman & Renshaw Maintain Market Outperform Rating and $15 PT on ARIAD Pharmaceuticals

A report from Rodman & Renshaw reiterates its Market Outperform rating and $15 price target on ARIAD Pharmaceuticals

. The report states, “We believe ARIA shares are not fundamentally driven by earnings, therefore any EPS “beat” or “miss” is largely irrelevant. As a reminder,we expect ARIA to report FY 3Q11 EPS of $0.27 driven by receipt of a $25mm milestone payment in the quarter from Merck for the filing of ridaforolimus with the EMEA, as well as an estimated ~$35mm positive accounting effect from revaluation of existing warrants liability. Further, we forecast R&D and SG&A spend for the quarter to come in at $19.0mm and $6.4mm, respectively." ARIA closed yesterday at $11.63.