UPDATE: Cantor Fitzgerald Reiterates Buy Rating, Raises PT on Ligand Pharmaceuticals

In a report published Friday, Cantor Fitzgerald reiterated its Buy rating on Ligand Pharmaceuticals

, and raised its price target from $25.00 to $28.00. Cantor Fitzgerald noted, “Ligand's Analyst Day on December 4 provided financial guidance for 2013-2014 (revenues of $41-44M and >$60M, and EPS of >$0.35 and >$1.05, respectively) as well as additional clarity regarding spending and tax expense into the outer years. The company's low tax rate coupled with its low share count is the crux of the story. Since Ligand can employ over $435M in unrestricted federal NOLs to offset tax, we think that adjusted non-GAAP earnings can quickly ramp to over $3/share (69% CAGR) over the next four years. Management indicated that it can keep Ligand's cash tax rate in the 2% range for the appreciable future (~6-8 years). Based on DCF valuation we therefore raise our PT to $28 from $25 and reiterate our BUY recommendation. Near-term we expect Promacta growth in HCV to propel the stock, while data catalysts are not expected until mid-2013.” Ligand Pharmaceuticals closed on Thursday at $18.09.