Adams Respiratory Therapeutics "sector perform," target price raised

05/30/06 - RBC Capital Markets

NEW YORK, May 30 (newratings.com) - Analysts at RBC Capital Markets reiterate their "sector perform" rating on Adams Respiratory Therapeutics Inc (ARXT), while raising their estimates for the company. The 12-month target price has been raised from $45 to $50.

In a research note published yesterday, the analysts mention that the company intends to acquire Delsym, which is the second-highest selling cough syrup. The proposed acquisition of Delsym is likely to be accretive to Adams Respiratory Therapeutics’ EPS and sales by $0.40-$0.65 and by $90-$110, respectively, over the forthcoming five years, the analysts add. The EPS estimate for FY07 has bee raised by $0.10 to partly reflect Delsym’s growth potential.