First Horizon Pharmaceutical "sector outperform," target price raised

02/23/06 - RBC Capital Markets

NEW YORK, February 23 (newratings.com) - Analyst Ken Trbovich of RBC Capital Markets maintains his "sector outperform" rating on First Horizon Pharmaceutical (FHRX), while revising his estimates for the company. The target price has been raised from $19 to $23.

In a research note published yesterday, the analyst mentions that the company is expected to report its 4Q05 EPS in-line with or ahead of the revised estimates and the consensus. First Horizon Pharmaceutical is expected to witness improved Rx trends for its Fortamet drug in the near term, which might prompt it to raise its guidance for 2006, RBC Capital Markets says. The EPS estimate for 2005 has been reduced from $0.96 to $0.95 to reflect Fortamet’s weaker-than-expected Rx performance. The EPS estimate for 2006 has been raised from $1.15 to $1.25.