Pharmacutical downgraded to "above average"

08/05/09 - Caris & Company

NEW YORK, August 5 (newratings.com) - Analysts at Caris & Company downgrade Pharmacutical Co (PRX) from "buy" to "above average," while raising their estimates for the company. The target price is set to $17.

In a research note published this morning, the analysts mention that the company has posted its 2Q EPS and revenues marginally ahead of the estimates and significantly ahead of the consensus. Pharmacutical's results were driven by higher-than-expected sales of generic Toprol XL and Imitrex, the analysts say. The company is expected to increase its marketing and promotional spending in the near future to transform to a Specialty Pharmaceutical business, Caris & Company adds.