NEW YORK (TheStreet) -- Endo International (ENDP) stock is slightly lower by 0.15 to $84.87 after Cantor Fitzgerald increased its price target to $92 from $80 and reiterated its "hold" rating for the Malvern, PA-based global specialty healthcare company.
Endo's pending transaction for generic drug producer Par Pharmaceutical will give the company entrance into the generic medications market, according to Cantor Fitzgerald.
On May 18, Endo announced that it is purchasing Par for $8.05 billion from private-equity firm TPG Capital, and the company expects the acquisition to be completed in the second half of 2015.
"We expect Endo to issue approximately 40 million new shares to finance this transaction, and management has indicated that it plans a $2 billion equity raise sometime in the near future," said Cantor Fitzgerald analyst Irina Koffler.
While there is potential for additional value creation from this transaction, Endo management indicated that the deal will position it for even more M&A in the future, according to Cantor Fitzgerald.
Separately, TheStreet Ratings team rates ENDO INTERNATIONAL PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENDO INTERNATIONAL PLC (ENDP) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."