Jefferies Maintains Buy on Salix Pharmaceuticals (SLXP)

Jefferies is out with its report today on Salix Pharmaceuticals SLXP, maintaining Buy. In a note to clients, Jefferies writes, "The success of SLXP hinges on Xifaxan and all signs indicate that usage will continue to go up – despite no formal IBS approval. Our $42 target price is derived by applying an 18x multiple on our 2012 EPS estimate of $2.35. With EPS growth projected at 35% through 2015, this seems very reasonable." Shares of SLXP closed Tuesday at $35.96, down 0.91% from Monday's close.