Bradley Pharmaceuticals initiated with "outperform"

12/23/03 - Wachovia Securities

NEW YORK, December 23 (New Ratings) — Analysts at Wachovia Securities initiate coverage of Bradley Pharmaceuticals, Inc (BDY) with an “outperform” rating.

Shares of Bradley Pharmaceuticals, a specialty pharmaceutical products company that primarily focuses on dermatology and gastroenterology segments, are currently trading at $25.10.

According to Wachovia Securities’ research note published this morning, Bradley Pharmaceuticals is poised to introduce several additional products with robust growth prospects in the near term. The analysts mention that the company has launched line extensions for several of its core products, including Carmol, LidaMantle and Pamine, recently. Moreover, Bradley Pharmaceuticals is likely to introduce new acne and GI products early in 2004, Wachovia Securities says.

The analysts anticipate additional earnings growth opportunities for Bradley Pharmaceuticals through its forthcoming strategic acquisitions in the near future. The company’s recent equity offering has improved its financial flexibility for the execution of near-term potential acquisitions, Wachovia Securities believes. The current valuation of Bradley Pharmaceuticals’ stock is attractive, the analysts add.

The EPS estimates for 2003, 2004 and 2005 are $1.26, $1.20 and $1.35, respectively. The P/E estimates for 2003 and 2004 are 19.9x and 20.9x, respectively.

Wachovia Securities initiates coverage of Bradley Pharmaceuticals, Inc with an “outperform” rating.