UPDATE: Piper Jaffray Upgrades Watson Pharmaceuticals to Overweight on Synergies, Generics Value

Piper Jaffray raised its rating on Watson Pharmaceuticals WPI from Neutral to Overweight and increased its price target from $77 to $103. Piper Jaffray noted, "With favorable competitive dynamics for an extended period likely for Concerta, Adderall XR (AXR) and Lidoderm, plus attractive synergies from the Actavis purchase and optionality on other generic opportunities (e.g. Intuniv, OxyContin), we believe WPI's current one-year forward P/E of 11x (on our EPS estimate of $8.22) is sustainable. In that context, we believe the risk/reward profile for WPI shares is attractive. We are upgrading WPI to an Overweight from a Neutral and raising our price target to $103 from $77, reflecting upward revisions to our estimates and a higher multiple." Watson Pharmaceuticals closed at $87.71 on Thursday.