Roth Capital Moves To The Sideline On Salix Pharmaceuticals; Cuts PT To $95
In a research report issued today, Roth Capital analyst Scott Henry downgrades shares of Salix Pharmaceuticals (NASDAQ:SLXP) from Buy to Hold and reduced his price target to $95 (from $160), which represents a slight upside potential from current levels.
Henry explained, “We are lowering our rating on SLXP shares to Neutral post disclosure of stuffed inventory channels. Our revised price target of $95 equates to a 15 multiple of our downward revised forecasted 2016 EPS base of $7.25/share (discounted one year at 15%). We believe that SLXP has a strong business and could ultimately be a takeout candidate again. However, we are price sensitive with regards to our selection of an entry point. A premium multiple seems unlikely with unreliable numbers.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Henry has a total average return of 11.5% and a 49.2% success rate. Henry has a 16.2% average return when recommending SLXP, and is ranked #394 out of 3364 analysts.