Citi Comments On Endo Pharmaceuticals Price Target

According to Citi, Endo Pharmaceuticals Holdings ENDP price target is $48. Citi said that it arrives at its $48 price target for Endo based on a relative 2012 P/E multiple compared to the specialty pharmaceutical peer group. “Our relative P/E valuation assumes Endo trades at ~9.3x our 2012 NEWCO EPS. We base our expectation of the improvement of the current multiple on the near term cash flow generation strength of Endo's pain management portfolio, the experienced management team's focus on applying the company's strong cash position and cash flow generating ability to near-term revenue generating business development opportunities, the revenue diversification and adjusted EPS accretion from the acquisitions of the HealthTronics, Penwest and Qualitest businesses, the launch of Fortesta gel and our expectations of a relatively strong revenue generation ability by Lidoderm for several years after its genericization.” Endo Pharmaceuticals Holdings closed yesterday at $40.24.