Analysts Raising QCOR Price Targets, Confirming PropThink’s Valuation

Price targets are rising for Questcor Pharmaceuticals (NASDAQ:QCOR) on Wednesday following the company’s third quarter earnings beat. The revised sell-side expectations support PropThink’s target price range of $37 to $46, which we released in the early morning. Bank of America raised its price target from $34 to $36 and factored a $6 per share fine (approximately one year of revenues) into the valuation, ultimately suggesting a $42 fundamental target. Piper Jaffray increased its QCOR price target from $43 to $45, while Roth maintained a $47 price target, and Jefferies raised from $28 to $30. Leerink Swann, however, lowered its target range from $34-$36 to $24-$25 over risks that insurers may still make policy adjustments affecting Acthar reimbursement. Importantly, the Leerink analyst noted that reimbursement currently remains strong and recognized QCOR’s positive quarter.

We base our valuation on QCOR’s current revenue run-rate; potential for growth with new indications; and adjust for some risk due to reimbursement uncertainties. The full article, detailing Questcor’s third quarter results, is available here.