Biovail "neutral," target price raised

05/11/07 - UBS

NEW YORK, May 11 (newratings.com) - Analysts at UBS maintain their "neutral" rating on Biovail Corp (BVF), while raising their estimates for the company. The target price has been raised from $22.50 to $24.50.

In a research note published this morning, the analysts mention that the company has reported its 1Q07 results significantly ahead of the estimates and the consensus due to higher-than-expected revenues and an increase in sampling and inventory from Ultram ER. Biovail’s healthy performance in 1Q appears unsustainable, since the strength was related to timing instead of improving fundamentals, the analysts say. The EPS estimates for 2007 and 2008 have been raised from $1.85 to $1.88 and from $1.66 to $1.74, respectively.