Piper Jaffray Overweight On Watson Pharmaceuticals (WPI)

Piper Jaffray has an Overweight rating and a $62 price target on shares of Watson Pharmaceuticals WPI.

In a note to clients, Piper Jaffray writes, "Yesterday, we hosted a conference call with Dr. Celeste Durnwald, a maternal and
fetal medicine (MFM) specialist, who was also an investigator in the pivotal trial for K-V's Makena, an injectible progesterone product recently approved by the FDA. Broadly speaking, our featured expert took a favorable view of the use of progesterone to prevent pre-term birth, as well as a favorable view of the convenience profile of a daily progesterone gel (i.e. Watson's Prochieve) versus a weekly injection. That said, she did not see a zero-sum game between the two products (Makena being used primarily in women with a history of pre-term birth and Prochieve being used in women with cervical length of less than 20 mm). We remain bullish on WPI shares (2012 P/E of 11x and a 5-year EPS CAGR in the low-to-mid-teens). We reiterate our Overweight rating and $62 PT."

Shares of WPI lost $1.44 yesterday to close at $53.89, a loss of 2.6%.