Roth cuts Lannett Co. to neutral; PT to $8 from $23
Roth Capital Partners downgraded Lannett Co. (NYSE AMER:LCI) to “neutral” and slashed its price target to $8 from $23 after the company lost an important customer and issued a profit warning.
Near midday on August 20, shares of Lannett were quoted at $5.62, down $7.88, or 58%, in heavy turnover, after Jerome Stevens Pharmaceuticals declined to renew its contract, which impacts Lannett’s largest drug, levothyroxine, as well as digoxin and butalbital. The contract expires in March 2019.
Analyst Scott Henry writes that minus these products, he reduced his estimated for 2020 revenue by about $175-million and per-share earnings by $1.60 to 70 cents.
“Valuation interesting but risk profile remains high given debt load,” he added. “We will re-evaluate post-increased visibility.”