PIMCO Tactical Income Units Class A T.PTI

analyst says Patheon undervalued

[mark5698]

Dundee analyst says Patheon undervalued Patheon Inc (C:PTI) Shares Issued 92,845,688 Last Close 7/19/2006 $7.65 Thursday July 20 2006 - In the News The Financial Post reports in its Thursday, July 20, edition that Patheon shares are already up 36 per cent since last December. The Post's David Berman writes in the Trading Desk column the stock may still have room to run. Dundee Securities analyst James Kuo says the volatility at Patheon is due to its 2004 purchase of MOVA. While MOVA suffered manufacturing problems, investors also fretted about Patheon losing its patent on Zocor. Mr. Kuo noted, "At the current price level, we believe that investors are still reflecting pessimism following the string of negative issues which has plagued Patheon over the last year." He added that investors are "valuing Patheon shares at too large of a discount to fair value." The Dundee analyst has raised his recommendation on the stock to market outperform. Mr. Kuo says the MOVA manufacturing problems are largely over. He is also upbeat about the arrival of new management after the departure of the chief financial officer and chief executive officer. Mr. Kuo has a 12-month price target of $9. Patheon shares rose 16 cents to close at $7.65 on the Toronto Stock Exchange on July 19. © 2006 Canjex Publishing Ltd.