UPDATE: Oppenheimer Raises PT on Endo Pharmaceuticals to $48 (ENDP)

Oppenheimer is out with its report today on Endo Pharmaceuticals ENDP, raising its PT from $42 to $48. In a note to clients, Oppenheimer writes, "On 4/11, ENDP announced the ~$2.9B all-cash acquisition of med device manufacturer American Medical Systems AMMD. Of note, ENDP's offer of $30/share, a 34% premium to the April 8 close, values AMMD at ~5.3x 2010 revenues of ~$542M. Importantly, the AMMD acquisition brings critical mass to ENDP's existing urology business by increasing the company's product offerings and expanding the sales force to ~270 reps (incl. 90 ex-US reps from AMMD). Notably, we believe ENDP will use a majority of future cash flows to pay down debt in order to lower the debt/EBITDA margin to 2-2.5x, although we note that bolt-on acquisitions are still a possibility. We are increasing our PT to $48 from $42." Shares of ENDP closed Monday at $41.06, up 0.51% from Friday's close.