Guggenheim Reiterates Buy on Endo Int'l (ENDP) Following Updated Guidance

Guggenheim reiterated a Buy rating and $110.00 price target on Endo International plc (NASDAQ: ENDP) following the company's updated financial guidance. Analyst Louise Chen continues to believe ENDP has set the stage for better-than-expected growth in '16+ driven by Xiaflex, Belbuca and the generics business.

Chen commented, "We remain positive on ENDP shares post the company's updated financial guidance ('15 and '16) following the close of the Par (generics) deal. We continue to believe ENDP has set the stage for better-than-expected growth in '16+ driven by Xiaflex (existing and new indications), Belbuca and the generics business. We anticipate brand-focused M&A to enhance ENDP's overall growth profile. This can be funded through a larger and growing EBITDA base. We expect pro forma EBITDA of $2B+ in '16, and leverage to come down to 3x-4x by mid-'16. We think ENDP could lever up to 5x-6x for the right deal, which suggests a capital structure that could support at least $5B worth of additional transaction(s)."

For an analyst ratings summary and ratings history on Endo International plc click here. For more ratings news on Endo International plc click here.

Shares of Endo International plc closed at $68.84 yesterday.

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