Jefferies downgraded Endo Pharmaceuticals (ENDP ) to hold from buy on valuation.
Analyst David Windley had maintained his buy rating following Friday's first-quarter release for two main reasons. First, he expected Endo would retrace part of its 21% gain on Apr. 24, and he assumed that in his rating. Second, he had previously named a number of longer-term opportunities, and assumed Endo would trade down modestly, and hang out for a while; instead, the company has been making new highs.
Given that nothing other than a general lift in the market has changed since he last increased his target, Windley says he's disinclined to raise his target, therefore, he downgraded. He sees 93 cents 2003 earnings per share, and $1.02 for 2004. Windley has an $18 target.