Morgan Stanley Raises Price Target On Watson Pharmaceuticals To $78

According to Morgan Stanley, Watson Pharmaceuticals WPI price target is raised to $78. Morgan Stanley said that it raised its ‘11E EPS 5% from $4.13 to $4.34 and its ‘12E EPS 10% from $5.21 to $5.74. “Our ‘11E-‘12E are 3% and 6% above cons' $4.23 and $5.42. We expect WPI to raise 2011 guidance of $3.95-$4.20 (midpt $4.08) on the 2Q call in late July. Our $78 PT is 14x our pre-Arrow 2012E of $5.74 and 15x our post-Arrow ‘12E of $5.13 (WPI excludes Arrow pmts. on Lipitor from non- GAAP EPS). WPI is currently trading at 16x cons' ‘11E of $4.23.” Watson Pharmaceuticals closed yesterday at $68.20.