WCRX Stock Is Ripe, Says Morgan Stanley

Morgan Stanley, after meeting with Warner Chilcott Plc WCRX CFO Paul Herendeen, says the company is ripe for its current environment. Says Morgan Stanley, in the report, “We believe that WCRX stock is ripe for the current environment because healthcare investors are increasingly focused on companies that are committed to driving shareholder returns. Warner has a long-term track record of value creation, and mgmt. is not sitting still. We expect mgmt. to drive further operating efficiencies, and we also see an opportunity for Warner Chilcott to acquire assets from larger entities as Major Pharma refocuses on their core operations. We expect EPS to be reported at or slightly above expectations in 2011. But patience is a virtue for external transactions, as we do not anticipate an imminent deal.” The researcher maintains its $27 price target and its Overweight rating on the stock. WCRX closed yesterday at $23.74.