Mizuho top analyst Irina Koffler assesses both short-term and long-term for Endo International plc – Ordinary Shares (NASDAQ:ENDP), believing there is every reason to remain bullish on the pharmaceutical firm’s prospects. As such, Koffler reiterates a Buy rating on shares of ENDP with a $29 price target, which represents a 40% increase from where the stock is currently trading.
Among the reasons Koffler roots for ENDP includes: Koffler anticipates the firm will “execute against earnings targets,” believes that if business stability can be “re-confirmed,” multiple expansion will be likely, and expects that “asset sales of products like Xiaflex can help Endo de-lever and streamline the business into a more attractive takeout target for other generic players still interested in consolidation.”
While pricing might remain as an “important lever,” Koffler explains when looking at the long-term, ENDP is likely to evolve from its current configuration. For that reason, the analyst chooses for now to overlook pricing dependence, predicting, ” Endo is being positioned for eventual restructuring while advancing its injectable pipeline.”
“We continue to like ENDP and explore de-levering optionality associated with Xiaflex in the current note. Longer term we think Endo’s business may be restructured and expect streamlining initiatives to become more visible over the next year,” Koffler concludes.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Irina Koffler has achieved a high ranking of #19 out of 4,158 analysts. Koffler upholds a 59% success rate and yields 22.2% in her annual returns. However, when recommending ENDP, Koffler faces a loss of 2.7% in average profits on the stock.
TipRanks analytics demonstrate ENDP as a Buy. 50% of analysts polled in the last 3 months rate a Buy on ENDP, while 50% maintain a Hold. The 12-month average price target stands at $28.89, marking a nearly 40% upside from where the shares last closed.