Leerink Partners Maintains OP Following Diplomat Pharmacy (DPLO) Q1

Leerink Partners maintains an Outperform rating on Diplomat Pharmacy (NYSE: DPLO), and raised the price target to $40.00 (from $36.00), following the release on the 1Q15 results. Diplomat reported an adjusted EPS of $0.09 (+57% y/y), which was $0.01 ahead of Leerink estimates and consensus. Total revenue of $625M increased +34% y/y. Revenue was slightly ahead of Leerink estimate
but below consensus.

Leerink analyst, David Larsen, commented on the quarter, saying, "DPLO reported adjusted EPS of $0.09, which was $0.01 ahead of our estimate and consensus. Adjusted EBITDA of $11.2M increased +36% y/y, and came in well ahead of our $9.4ME and consensus of $9M. Total revenue of $625M (+34% y/y) beat our estimate by about ~$0.5M. Consistent with our model, there was no benefit from BioRx in the quarter which closed 4/1/15. Overall we view 1Q:15 results as excellent. Diplomat grew both revenue and EBITDA in excess of 30% y/y, management increased the full-year outlook for the business across all metrics - including revenue, and it is clear to us that there is significant operating and earnings leverage in the model."

Larsen also added that, "Management increased full year 2015 revenue guidance by $100M on the bottom-end of the range and all other guided metrics were also increased including adjusted EPS, adjusted EBITDA and adjusted Net Income. We remain positive on DPLO with management noting that RFP volumes are up 2x from last year, and the pending CTRX/UNH deal may also drive incremental opportunities for DPLO in our view. We increase our PT to $40 (previously $36) on strong 1Q:15 results and an increase to guidance."

For an analyst ratings summary and ratings history on Diplomat Pharmacy click here. For more ratings news on Diplomat Pharmacy click here.

Shares of Diplomat Pharmacy closed at $36.11 yesterday.

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