Oppenheimer Raises Price Target On Cubist Pharmaceuticals To $44

According to Oppenheimer, Cubist Pharmaceuticals CBST price target is raised to $44. Oppenheimer said that upon further analysis of the unique deal with TEVA regarding generic Cubicin's launch, and given the high degree of Cubicin manufacturing difficulty, it believes the Street is undervaluing the Cubicin franchise. “CBST reported 2Q11 adjusted EPS of $0.76, ahead of our $0.57 estimate, owing to higher than expected sales of Cubicin and non-GAAP adjustments. We are adjusting our 2011 EPS estimate to $2.57 from $2.13 and our 2012 EPS estimate to $2.38 from $2.24.” Cubist Pharmaceuticals closed yesterday at $35.93.