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UPDATE: JMP Securities Initiates Coverage On Pernix Therapeutics On Positive Growth Outlook

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In a report published Tuesday, JMP Securities analyst Oren G. Livnat initiated coverage on Pernix Therapeutics Holdings Inc (NASDAQ: PTX) with a Market Outperform rating and $13.00 price target.

In the report, JMP Securities noted, “We are initiating coverage of Pernix Therapeutics with a Market Outperform rating and $13 price target. Pernix is a commercial-stage, specialty pharmaceuticals company in the early innings of an aggressive acquisition strategy following a recent management overhaul. The company has quickly transformed, via acquisitions, from an unprofitable branded generics company to a CNS-focused, highly profitable, growth company with a productive sales force with an appetite and capacity for additional growth. We believe PTX can significantly grow its key assets and execute on additional business development. Clearly, investors anticipate additional deals, in our view, and the stock reflects credit for value beyond the limited patent life of key drivers. However, we believe: 1) there is substantial fundamental upside to 2016-2018 Street estimates; 2) the company could make potentially transformative M&A moves sooner rather than later; and 3) life-cycle strategies could extend current franchise values. Our $13 target is based on 8.4x 2016 P/E and 6.6x EV/EBITDA multiples that are >40% below Spec Pharma averages.”

Pernix Therapeutics closed on Monday at $9.39.

Latest Ratings for PTX

DateFirmActionFromTo
Aug 2016Brean CapitalDowngradesBuyHold
Mar 2016OppenheimerDowngradesOutperformPerform
Mar 2016Brean CapitalMaintainsBuy

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Posted-In: JMP Securities Oren G. LivnatAnalyst Color Initiation Analyst Ratings

 

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