UPDATE: J.P. Morgan Lowers PT on PDL BioPharma on Model Update

In a report published Wednesday, J.P. Morgan reiterated its Neutral rating on PDL BioPharma

but lowered its price target from $7.00 to $6.00. J.P. Morgan noted, “PDL BioPharma reported 4Q12 GAAP EPS of $0.34, which was 2 cents ahead of expectations (JPMe and cons: $0.32). Total revenues of $86M were in line with prior guidance. On the call, PDL noted a continued focus on adding additional revenue generating assets in 2013 and expect to exceed that invested last year. Indeed, progress was made in 2012 with three transactions ($125M total investment), but more are need to ensure sustainability post approaching Queen et. al. patent expiration. PDL reiterated its intention to evaluate the business in late 2013/2014 to determine whether to wind up the business. We are maintaining our cautious outlook on new royalty opportunities and maintaining a Neutral rating.” PDL BioPharma closed on Tuesday at $6.98.