Zacks Investment Research downgraded shares of Warner Chilcott plc (WCRX) from OUTPERFORM to NEUTRAL on March 18, 2013, with a target price of $15.00.
Warner Chilcott's fourth quarter 2012 adjusted earnings of $0.91 per share easily beat the Zacks Consensus Estimate of $0.73. Lower selling, general & administrative costs were primarily responsible for the earnings beat. Warner Chilcott continues to expect to earn $3.20-$3.30 per share in 2013. Our 2013 earnings estimate is towards the higher end of the guidance range provided by the company. Though impressed by the company's diversified product portfolio, we remain concerned regarding the generic threat faced by its drugs. Moreover, the weak late-stage pipeline at Warner Chilcott also bothers us. In view of these challenges, we see limited upside potential from current levels and hence revert to a Neutral recommendation on the stock.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Warner Chilcott plc (WCRX),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment