Goldman Ups Barr Pharmaceuticals to Outperform

Analyst Randall Stanicky says the company has a visible long-term growth story

Goldman Sachs upgraded Barr Pharmaceuticals (BRL) to outperform from in-line.

Analyst Randall Stanicky says the pharmaceutical company has a visible long-term growth story, with identifiable upside to his above-consensus earnings per share (EPS) estimates. He notes growing contribution from the company's proprietary products (38% of its 2007 gross profit,) and thinks this represents a shift which may garner premium valuation going forward. He says the company's recent share price weakness may be partly linked to concerns over a potential deal with Mylan Laboratories (MYL), but he views this combination as unlikely. He sees fair value in the low- to mid-$70s.

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