Piper Jaffray Reiterates Overweight Rating on Salix Pharma (SLXP)

Piper Jaffray is out with a research report this morning, where it reiterates its Overweight rating on Salix Pharmaceuticals SLXP; it has a $60.00 price target on the stock. The PJ analysts said that Xifaxan prescription trends continue to be strong through early December, pointing to another quarter of potential upside. They believe 4Q10 Xifaxan demand is tracking to roughly $85M-$90M, versus SLXP expectations of $80M. Though SLXP shares have been strong of late, the analysts believe there still is significant value creation potential. The analysts added that they are looking for continues confirmation that cost As for valuation the DB analysts remarked, “With Xifaxan peak sales in excess of $1B realistic, we believe Salix is the most compelling small-cap story in specialty pharma. We base our $60 PT on our 2014 EPS estimate of $6.81, times a P/E of 12x, discounted at 15% for 2.25 years.”