Elan Corporation, plc (ELN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Elan Corporation, plc (ELN)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: William Partmann who wrote (589)	11/4/1999 2:00:00 PM
From: E.J. Neitz Jr	Read Replies (1) of 10345

For All: DLJ Comments Just Released ELAN CORPORATION (ELN: $25.50)@ 11/04/99 Moving from Top Pick to Buy Stock Continues to Possess Solid New Product Growth Characteristics Rating: BUY Change: Down From Top Pick 12-Mo. Target: $35 Elan possesses a solid line-up of incremental new products pending commercialization over the 2000-2001 period, which are capable of driving average earnings growth of about 24%. After meeting with management over the past week to discuss forward earnings assumptions following the delay in the Frovatriptan (migraine) program, we believe the company will achieve our adjusted 2000 earnings target of $1.51. However, based on anticipated Frovatriptan launch expense adjustments, we are modestly shaving our 2001 earnings forecast by $0.04 from a prior level of $1.91 to a new level of $1.87, which brings our forecasts roughly in-line with consensus. Although Elan has generally hit earnings targets, upside earnings surprise potential and resulting relative stock performance has been curtailed by recent delays in new product approvals. While we continue to anticipate forward multiple expansion in Elan's share price with the pending roll-outs of Zonegran, Neurobloc and Ziconotide in 2000, the recent push back in Frovatriptan into 2001 has both tempered growth forecasts and removed an incremental 2000 earnings driver. The extension of these commercialization timelines has prompted us to adjust our investment rating on Elan from Top Pick to Buy. We continue to believe that Elan should be bought at these levels, particularly with respect to the stock's very inexpensive 16.9 times projected 2000 earnings multiple, a sharp discount to the company's projected 24% earnings growth profile as well as the 21.4 specialty pharmaceutical sector composite.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next