UPDATE: Stifel Nicolaus Reduces PT to $50 on Endo Pharmaceuticals Post Lidoderm Settlement

Stifel Nicolaus reiterates its Buy rating on Endo Pharmaceuticals

and reduces its price target from $53 to $50. Stifel Nicolaus notes, "Endo announced a long-awaited settlement with Watson on Lidoderm, finally drawing the line in the sand for the worst case scenario generic entry while capitalizing on the uncertainty of Watson's ANDA approval (through the deal economics) and eliminating the volatility of the ongoing patent litigation. We believe the terms of the deal represent a strategic compromise, which is beneficial to both Endo and Watson, and expect the resolution bode positively for ENDP shares, taking the uncertainty overhang off the stock." ENDP closed at $34.20 on Tuesday.