UPDATE: Goldman Sachs Raising Price Target On Warner Chilcott Ltd. (WCRX)

Goldman Sachs is raising its price target on shares of Warner Chilcott Ltd. WCRX to $28 from $26, but it has a Neutral rating on shares. In a note to clients, Goldman writes, "We hosted WCRX CFO Paul Herendeen for dinner and came away with greater confidence in our now above consensus EPS forecasts and what we view as real upside optionality in shares. While our growth forecasts are still moderate, a combination of (1) trough valuation at 5.8x 2012 EPS, (2) now more realistic expectations around recent launches with greater near-term confidence in our EPS, and (3) potential upside from deal activity where both access to capital and management willingness exist, set the shares up well at current levels, in our view. Overall, no change to Neutral rating though we raise our price target to $28 (from $26) on higher EPS. We see an upside skew to the stock from here as shares have lagged year-to-date, up 6% against a sector gain of 19%; a gap we think, may narrow." Shares of WCRX gained 19 cents yesterday to close at $23.93, a gain of 0.8%.