Endo rises on analyst upgrade and profit estimates

Endo Pharma upgraded before FDA ruling on Fortesta; analyst says profits will top views

• On 12:22 pm EDT, Monday October 5, 2009

NEW YORK (AP) -- Shares of Endo Pharmaceutical Holdings Inc. rose Monday after an analyst upgraded the stock, predicting better-than-expected third-quarter and full-year results for Endo.

Oppenheimer analyst John Newman raised his rating to "Outperform" from "Perform" and set a price target of $27 per share, which would be an 18-month high for shares of the Chadds Ford, Pa., company. Newman thinks Endo will surpass Wall Street's profit expectations, and he said its testosterone injection Fortesta will be approved later this month.

In midday trading, Endo stock rose $1.59, or 7.2 percent, to $23.70. The shares have traded between $13.87 and $26.14 over the last year.

Newman expects Endo to earn a profit of 65 cents per share in the third quarter, which is a penny ahead of Wall Street estimates. He projects a profit of $2.72 per share for the year, which is more than Endo is forecasting. Thomson Reuters says analysts are expecting $2.70 per share.

Fortesta is a long-acting injectable testosterone replacement, and is designed for use by men whose bodies do not produce enough of the hormone. Endo bought the U.S. rights to Fortesta from its developer, ProStrakan Group, in August.