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UPDATE: Piper Jaffray Raises PT on Obagi Medical Products, Reiterates Neutral on Uncertainty

Related OMPI
Valeant Pharmaceuticals International Completes Tender Offer for Obagi Medical Products
Valeant Pharma Reports Receipt of Approval from Antimonopoly Committee of Ukraine for Obagi Offer

Piper Jaffray maintained Obagi Medical Products (NASDAQ: OMPI) with a Neutral rating and raised the price target from $12 to $13.

Piper Jaffray analyst David Amsellem noted, "Obagi reported 4Q12 adjusted diluted EPS of $0.15 (including $1.7M of spending related to the ongoing build-out of the company's e-commerce platform), beating the Street estimate of $0.14. Revenues were in line with the Street, with Nu-Derm up 4% over 4Q11. The growth outlook however is murky in our view given that Allergan (via its SkinMedica unit) launched a non-hydroquinone-based skin lightening product in January 2013. Given the competitive dynamics surrounding Nu-Derm and the added expense and questionable benefits associated with the e-commerce platform in our view, we believe the outlook for sustainable longer-term earnings growth is uncertain."

Obagi Medical Products closed at $13.94 on Thursday.

Latest Ratings for OMPI

Apr 2013Cantor FitzgeraldMaintainsHold
Mar 2013Roth CapitalDowngradesBuyNeutral
Mar 2013Cantor FitzgeraldDowngradesBuyHold

View More Analyst Ratings for OMPI
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