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Biotech / Medical : WPI Watson Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Adelle who wrote (27)	2/25/1999 10:34:00 AM
From: Doughboy	Read Replies (1) \| Respond to of 61

Watson Pharmaceuticals UPGRADED!!! RESEARCH ALERT - Watson Pharmaceuticals NEW YORK, Feb 25 (Reuters) - Warburg Dillon Read said drug analyst Jerry Treppel Thursday raised his rating on generic drug maker Watson Pharmaceuticals Inc. (NYSE:WPI - news) to a strong buy from a buy based on valuation. -- Says: "A rare opportunity to buy WPI shares below the market multiple. At 26x times our 1999 earnings per share estimate, Watson shares now trade at only a 13 percent premium to the generic group and a 12 percent discount to the S&P 500. -- ''Watson shares since going public have never traded at a multiple below the S&P 500 for an extended period of time.'' -- ''Watson's multiple has contracted despite significant inroads into the branded business. Watson's branded sales have increased from 34 percent of sales in the second quarter of 1998 to 44 percent in the fourth quarter of 1998, and represent well over half of its profits. Additionally, over that same period, operating margins have expanded from 39 percent to 44 percent. These positive trends should continue with branded products expected to be 50 percent of total sales within the next few years.'' -- Share price is down 1/4 at 45 on the New York Stock Exchange.