B.Riley FBR Assigns a Buy Rating on Supernus Pharmaceuticals

By Austin Angelo

B.Riley FBR analyst David Buck assigned a Buy rating to Supernus Pharmaceuticals (NASDAQ: SUPN) today and set a price target of $54. The company’s shares closed yesterday at $38.70.

Buck said:

“We reiterate our Buy and we raise our price target to $54 per share (from $50) as we apply the impact of a lower US federal corporate tax rate of 21% versus 35% starting in 2018. We expect the impact to be an approximate 20% EPS in our estimates as we raise our 2018E EPS from $1.55 to $1.85, 2019E EPS from $2.25 to $2.70, and 2020E EPS from $3.25 to $3.90. As a reminder, medium term, Supernus is booking a near corporate tax rate, modestly below ~30% for 2017, while Supernus’ net operating loss tax benefits allow it to actually pay a lower rate. Over the medium term, we expect cash flow to be in excess of net income. We update our model with no major changes to our expectations for Trokendi XR (epilepsy/migraine) and Oxtellar XR (epilepsy) growth of 31% and 26% for 2018 and 2019. We have modeled some incrementally higher SG&A spending, offsetting some of the tax rate benefit.”

According to TipRanks.com, Buck is a 4-star analyst with an average return of 12.4% and a 59.5% success rate. Buck covers the Healthcare sector, focusing on stocks such as Spectrum Pharmaceuticals, Sucampo Pharmaceuticals, and Amag Pharmaceuticals.

Supernus Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $48.83.

The company has a one-year high of $50.05 and a one-year low of $23.10. Currently, Supernus Pharmaceuticals has an average volume of 454.4K.

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Supernus Pharmaceuticals, Inc. engages in the development and commercialization of products for the treatment of central nervous system diseases. Its neurology portfolio consists of Oxtellar XR and Trokendi, which treats patients with epilepsy.