The coverage follows Endo's Tuesday announcement that the Dublin-based specialty pharmaceuticals company had been issued a patent for Vasostrict, an injectable used to increase blood pressure in patients suffering from post-cardiotomy or septic shock.
Vasostrict already provides Endo about $300 million in revenue and the patent, which expires in 2035, will decrease the risk of competing drugs.
While Endo stock jumped after the patent approval, BMO remains cautious and says new buyers should be wary to invest in the company "without better visibility on operational execution."
"We acknowledge we may miss a short-term bounce in Endo's stock given how depressed the valuation is, but a number of questions about longer-term fundamentals need to be sorted out," BMO noted.
Endo shares are lower by 1.58% to $15.94 during late afternoon trading.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ENDO INTERNATIONAL PLC as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.