UPDATE: Morgan Stanley Resumes Coverage On Endo International On Durable Growth And M&A Optionality

Courtesy of Benzinga.

In a report published Thursday, Morgan Stanley analyst David Risinger resumed coverage on Endo International plc – Ordinary Shares (NASDAQ: ENDP) with an Overweight rating and $101.00 price target.

In the report, Morgan Stanley noted, “We believe investors under-appreciate the durability of Endo’s long-term growth prospects; $101 PT explained. We model 2015-2020E (5-yr CAGR) rev growth of 6% and EPS growth of 15%. Our $101 target represents 20x ’16E EPS of $5.03, assuming a PEG ratio of 1.3x EPS growth of 15%. Auxilium deal enhances high-value branded pharma business. The Auxilium merger closed on 1/29/15. We estimate Auxilium will boost Endo’s 2020 branded segment revenue by 65% and total company sales by 23%.”

Endo International plc – Ordinary Shares closed on Wednesday at $85.65.

Posted-In: David Risinger Morgan StanleyAnalyst Color Initiation Analyst Ratings