Leerink Partners Cuts Price target on Diplomat Pharmacy (DPLO) Following Weak EPS Guide

Leerink Partners maintained an Outperform rating on Diplomat Pharmacy (NYSE: DPLO), and cut the price target to $35.00 (from $40.00), following the company's 4Q. DPLO reported revenue of $987M, ahead of consensus' $970M. Adjusted EPS of $0.21 beat the consensus of $0.20. 2016 guidance calls for total revenue of $4.3B -$4.6B (vs. consensus of $4.4B), as well as adjusted EPS of $0.84 - $0.89 (vs. consensus of $1.00).

Analyst David Larsen commented, "This afternoon DPLO reported 4Q:15 revenue of $987M (+61% y/y), below our estimate (of $1,007M) but ahead of consensus (of $970M). Adj. EPS of $0.21 missed our estimate by a penny but beat consensus (of $0.20). In our view DPLO finished 2015 strong, with good 4Q:15 gross margin expansion (+109bps y/ y) and a more diversified revenue mix. 2016 revenue guidance of $4.3B - $4.6B brackets expectations, but we expect shares to come under pressure due to disappointing EBITDA and EPS guidance. We are reducing our EPS outlook, although management has a track record of guiding conservatively and with the reset of investor expectations, we believe DPLO remains well positioned to deliver beats in 2016. PT to $35."

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 $35.62 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades Tata Technologies (TATATECH:IN) to Underweight
• Canaccord Starts Elixir Energy Ltd (EXR:AU) at Spec. Buy
• RBC Capital Starts Northview Residential REIT (NRR-U:CN) at Sector Perform