UPDATE: Bank Of America Reiterates On Impax Laboratories On Rolling Forward Discount Period

In a report published Tuesday, Bank of America analyst Sumant S. Kulkarni reiterated an Underperform rating on Impax Laboratories (NASDAQ: IPXL), and raised the price target from $27.00 to $28.00.

In the report, Bank of America noted, “We are raising our DCF-based price objective from $27 to $28 based mainly on rolling forward our discount period to mid-2015 (vs. end-2014). We did not make any substantial changes to our model, which we updated for Rx trends in the Parkinson's market that drives our Rytary estimates. We remain cautious on IPXL shares as our model already builds in significant value for new launches (including Rytary) and because IPXL's FDA issues are as yet unresolved. That said, we believe IPXL, with new CEO Fred Wilkinson (ex-Actavis) at its helm, could engage in business development activity, which could present a risk to our thesis; recall that IPXL remains cash-rich (~$6/share).”

Impax Laboratories closed on Monday at $28.03.