Citi Raises WCRX 2011E EPS Estimate

Citi has raised its Warner Chilcott Plc WCRX 2011E EPS by $0.15 to $3.70(+6%) vs. WCRX's revised ‘11E target of $3.60 (+3%) - $3.70 (+5%) & the Street's $3.62(+3%). “WCRX's raised its ‘11E EPS target by $0.15 based on its refinancing of its senior secured credit facilities on more attractive terms, which lowered our projected interest expense, while maintaining its other ‘11E targets,” Citi writes. “As a result, we raised our ‘12E/'13E EPS by $0.11/$0.06 to $4.02(+8%)/$3.97(-1%) vs. the Street's $3.99(+8%)/$4.39 (+9%). Our '10-13E sales/EPS CAGR's remain at -2%/+4%. We reiterate our Buy Rating & $29 PT, which assumes WCRX trades at ~7.2x our 2012E EPS of $4.02.” Warner Chilcott closed Tuesday at $22.71.