First Albany initiated coverage of aaiPharma (AAII ) with strong buy.
Analyst Adam Greene says aaiPharma is a specialty drug firm that has operated for more than two decades as a contract firm for other drug companies; it has now transitioned to an integrated pharmaceutical concern. He says aaiPharma has acquired several products over the last two years, and is using its broad industry R&D experience to formulate, improve, and relaunch novel versions of older drugs.
Green thinks aaiPharma has a strong portfolio of core drugs, and is positioning itself for strong future sales and earnings growth. He notes shares are trading at a deep discount to the specialty drug group. He sees $1.12 2003 earnings per share, and has a $19 target.