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Roth Capital: Time To Buy IGI Labs, 2016 Could Be 'Breakout Year'

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In a report published Friday, Roth Capital Partners analyst Scott R. Henry upgraded the rating on IGI Laboratories, Inc. (NYSE: IG) from Neutral to Buy, while raising the price target from $7 to $11.

Analyst Scott R Henry cited "stabilization of the econazole nitrate franchise, a lower valuation, and potential ANDA pipeline catalysts coming out of 2015 and into 2016" as the impetus for the upgrade.

IGI Laboratories develops, manufactures, and markets topical formulations in the US, besides developing, manufacturing, filling and packaging topical semi-solid and liquid products for the pharmaceutical and cosmetics industries.

The company reported better-than-expected 2Q15 revenues of $8.9 million, driven by new contract wins for the econazole nitrate franchise. The company hinted at a potential stabilization of its revenue stream.

Saying that 2016 could be a "Breakout" year for IGI Laboratories, the Roth Capital Parners report noted, "Our forecast now targets ~$16M per year from this franchise in 2016+. We expect only modest new approvals in 2015 (perhaps 1 additional product launch)."

"However, the year 2016 could bring old ANDA approvals (could be as high as 9 launches) and new accelerated GDUFA approvals (could be as high as 5 launches). This bolus of 14 potential approvals could start the hyper revenue growth that investors have been waiting for," the report added.

Latest Ratings for IG

DateFirmActionFromTo
Jul 2015Roth CapitalUpgradesNeutralBuy
Apr 2015Avondale PartnersDowngradesOutperformMarket Perform
Apr 2015OppenheimerDowngradesOutperformPerform

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Posted-In: ROTH Capital PartnersAnalyst Color Upgrades Price Target Analyst Ratings

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