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Biotech / Medical : Sepracor-Looks very promising

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To: rkrw who wrote (10203)11/1/2007 2:46:57 AM
From: Icebrg   of 10280
 
Sepracor "neutral," target price raised

Wednesday, October 31, 2007 9:35:03 AM ET
Robert W. Baird

NEW YORK, October 31 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Sepracor Inc (SEPR.NAS), while raising their estimates for the company. The 12-month target price has been raised from $28 to $29.

In a research note published yesterday, the analysts mention that the company has posted robust results for 3Q, with EPS ahead of the estimates and the consensus. Sepracor's sales and gross profits were in-line with the estimates, the analysts say. The company has issued its EPS guidance for 2008 at $2.35-$2.45, significantly ahead of the consensus. The valuation multiples for Sepracor's stock are likely to contract going forward due to the company's failure to post sales growth, Robert W Baird adds. The EPS estimate for 2007 has been raised from $1.26 to $1.30 and from $1.48 to $2.37, respectively.
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