Hold - Price 9.40 on May 12
by Standard & Poor's Equity Research

1Q adjusted EPS of 26 cents -- versus 51 cents [a year ago] -- were well above our eight-cent estimate, reflecting the exclusion of significant noncash charges. We see KG making progress on its new strategic initiative in abuse-resistant pain drugs, with Food and Drug Administration [new-drug approvals] likely...near term. While possible generic challenges to Skelaxin remain a key risk, we think KG's outlook should improve with new drugs and Alpharma synergies. We are raising our target price by $6, to 11, applying a peer-level P/E of 11 times our '09 EPS estimate of $1, raised by 20 cents today. Market cap: $2.3 billion.

Also a spike in the volume of King Pharma (KG) May 10-calls also leads Najarian believe this stock could soon move higher.

For Fitzpatrick's take, click here.

1:30

local co. I know well

KG- A screaming buy and way undervalued! jan.17th $10.80

cheap

takeover target

Trailing price/earnings of 12, pre-tax return on capital greater than 100%, 0.166 debt/equity.

Downgraded by Citigroup from Hold to Sell

speculation