Neurocrine Biosciences downgraded to "neutral"
Tuesday, May 04, 2004 12:31:52 PM ET
Banc of America
NEW YORK, May 4 (New Ratings) — Analyst Michael King of Banc of America Securities downgrades Neurocrine Biosciences, Inc (NBIX.NAS) from "buy" to "neutral," while revising his estimates for the company. The 12-month target price is set to $67.
Shares of Neurocrine Biosciences, a specialty pharmaceuticals company, are currently trading at $63.16.
According to Banc of America Securities’ research note published this morning, the company’s share price has appreciated significantly so far in 2004. The analyst mentions that Neurocrine Biosciences’ Indiplon new drug application (NDA) filing is likely to be delayed beyond the company’s original timeframe guidance of mid-2004. Moreover, Neurocrine Biosciences is likely to witness the launch of Estorra, a competing product for Indiplon, in 2H04, Banc of America Securities says.
The current valuation of Neurocrine Biosciences’ stock fairly reflects the company’s near-term earnings growth potential, the analyst believes. Banc of America Securities expresses its optimism regarding the robust long-term sales growth potential of the company’s Indiplon product.
The EPS estimate for 2004 has been reduced from -$0.05 to -$0.08, while the EPS estimate for 2005 has been raised from $2.55 to $2.94. The P/E estimate for 2005 is 21.5x.
Banc of America Securities downgrades Neurocrine Biosciences, Inc from "buy" to "neutral." |
