Par Pharmaceuticals "buy," target price raised

11/23/04 - Piper Jaffray

NEW YORK, November 23 (newratings.com) - Analysts at Piper Jaffray maintain their "outperform" rating on Par Pharmaceuticals (PRX), while raising their estimates for the company. The target price has been raised to $45.

In a research note published this morning, the analysts mention that the company’s transition from the sale of primarily distributed and authorized generics to more of its own generic products would enable it to post robust results. Par Pharmaceuticals’ growth would be driven in the near future by the improvement in the company’s gross margins, the analysts add. The EPS estimate for 2005 has been raised from $2.80 to $2.85.