BofA turns bearish on Salix Pharma

|About: Salix Pharmaceuticals, Ltd. (SLXP)|By:, SA News Editor

BofA cuts Salix Pharmaceuticals (SLXP) to Underperform from Neutral.

This is a valuation call. Here's analyst Gregg Gilbert: "With the stock now trading above our PO, which we believe reflects a relatively bullish set of assumptions, we are moving to an Underperform rating."

The bullish assumptions: "Stronger performance for the base business, more credit for the late-stage pipeline, and significant contribution from the Santarus acquisition."

$86 target maintained.

SLXP -1.7% premarket