UPDATE: Jefferies Downgrades NPS Pharmaceuticals on Valuation

In a report published Wednesday, Jefferies analyst Eun K. Yang downgraded the rating on NPS Pharmaceuticals NPSP from Buy to Hold, but reiterated the $38.00 price target. In the report, Jefferies noted, “FY14 guidance/4Q13 sales of Gattex preannounced on 1/8/14. Solid Gattex U.S. launch in 2013 and anticipation of bigger Natpara opportunity resulted in strong stock performance. Now trading at ~17.2x EV/'14 revenue (vs. ~16.1x for BMRN and ~17.5x for ALXN), we view near term, potential of Gattex/Revestive and Natpara is largely priced in. Thus, we downgrade NPSP to Hold on valuation and maintain $38 PT.” NPS Pharmaceuticals closed on Tuesday at $37.95.