UPDATE: Bank of America Downgrades Sagent Pharmaceuticals to Neutral, Raises PT on Potential Near-Term Volatility

In a report published Friday, Bank of America analyst Sumant S. Kulkarni downgraded the rating on

from Buy to Neutral, but raised the price target from $25.00 to $28.00. In the report, Bank of America noted, “We remain constructive on SGNT over the longer term and note that there could be significant upside if SGNT's product/margin mix improves via important launches or better base generic pricing, or if business development transactions emerge. But, with the stock up ~50% since this year's low on 2/4/14, we are moving from a Buy to a Neutral rating. We did not make any substantial changes to our estimates, but rolled our DCF discount period out to mid-15 from end-14 We also tweaked down our discount rate assumption to a more realistic 10% (vs. 11%), which leads us to our new, higher PO of $28 (vs. $25). We see some potential for volatility around next week's 2Q earnings.” Sagent Pharmaceuticals closed on Thursday at $26.66.