Piper Jaffray Overweight On Salix Pharmaceuticals, Has $58 Target (SLXP)

Piper Jaffray is maintaining its Overweight rating and $58 price target on Salix Pharmaceuticals (NASDAQ: SLXP) after the pharmaceutical company reported much better than expected earnings yesterday after the bell on sales of Xiafan, its irritable bowel syndrome drug.

Piper Jaffray notes, "Though management left 2010 guidance unchanged (diluted EPS of $0.04), we continue to believe that this expectation is beatable. With continued prescription (Rx) growth for the Xifaxan franchise, and the expedited review (FDA action date of 12/7/10) of Xifaxan550 for non-constipation irritable bowel syndrome (IBS), we expect that SLXP shares will outperform its specialty pharma peers over the next several months. We continue to believe that SLXP has one of the most compelling long-term EPS growth trajectories in the space. We reiterate our Overweight rating and $58 price target."

Shares of Salix Pharmaceuticals are down $1.08 to $41.78 in early Tuesday trading.