Market Overview

UPDATE: Morgan Stanley Downgrades Auxilium Pharmaceuticals as Growth May Not Match High Valuation


In a report published Thursday, Morgan Stanley analyst David Friedman downgraded the rating on Auxilium Pharmaceuticals (NASDAQ: AUXL) from Equal-Weight to Underweight, but reiterated the $15.00 price target.

In the report, Morgan Stanley noted, “We are DG AUXL to UW from EW as we do not believe the stock price reflects the shallower sales growth that we see as likely. Consensus revenue (per Thomson) is ~$860 by 2018, with a trend towards ~$1+bn by 2019. Using our DCF framework with consensus revenue/OpEx trends generates a valuation at the current stock price. Our $15 PT reflects lower revenue, OpEx, and EPS. While some on the Street attribute strategic value to AUXL, we see the likely slower future growth, currently rich valuation, high leverage ($13/sh debt), and key risks to T drugs and Stendra as precluding this activity. We believe as growth lags consensus, the stock will need to reflect a more commensurate valuation.”

Auxilium Pharmaceuticals closed on Wednesday at $31.93.

Latest Ratings for AUXL

Oct 2014MizuhoDowngradesBuyNeutral
Oct 2014MKM PartnersDowngradesBuyNeutral
Sep 2014RBC CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for AUXL
View the Latest Analyst Ratings


Related Articles (AUXL)

View Comments and Join the Discussion!

Posted-In: David Friedman Morgan StanleyAnalyst Color Downgrades Analyst Ratings

Latest Ratings

WKHSRoth CapitalMaintains15.0
HCKTRoth CapitalMaintains22.0
ARECRoth CapitalInitiates Coverage On7.5
SLABWells FargoMaintains180.0
PENWells FargoMaintains310.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at