UBS Starts Diplomat Pharmacy (DPLO) at Buy

UBS initiates coverage on Diplomat Pharmacy (NYSE: DPLO) with a Buy rating and a price target of $35.00, telling clients to take advantage of the dip.

Analyst Steven Valiquette commented, "Given the recent sell-off of biopharmaceutical stocks in relation to general concerns about a potential slowdown in brand drug price inflation due to perceived political pressure, it appears that shares of specialty pharmacy provider Diplomat (DPLO) have also been caught up in the vortex. Shares of DPLO are now down over 50% from the 52-week high set back in July, despite minimal change in the near-term business outlook. It is worth noting that DPLO has posted 40% sales growth in 1H15, which includes 29% organic growth driven primarily by volume growth and new drug introductions. By contrast, the major underlying drugs have witnessed price increases of only 5% on average. So price inflation is simply not a critical driver of the DPLO thesis."

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 $27.75 yesterday.

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