Goldman Discusses Salix Pharmaceuticals, Ltd. (SLXP)

Goldman Sachs has a note on Salix Pharmaceuticals, Ltd. SLXP after it reported earnings. It has a Neutral rating and a $37 price target on shares. In a note to clients, Goldman writes, "We maintain our Neutral rating with a still strong growth outlook providing support for shares, but limited visibility on the path to upside from here. Our long-term earnings expectations are essentially unchanged despite lower 2011 guidance. After adjusting for the timing of inventory swings (stocking in 4Q10, destocking in 1Q11), 2011 revenue guidance was essentially in line with our expectations. We assume the higher SG&A spending, which mostly impacts 2011, does not flow through meaningfully to our longer-term estimates (2013/2014). Our new 2011 to 2014 EPS estimates are $1.85, $2.46, $3.04, and $4.03, respectively (from $2.09, $2.55, $3.05, $4.00)." Shares of SLXP lost 15 cents yesterday to close at $33.34, a loss of 0.45%.