Biovail Rallying On UBS Target Increase (BVF)
Shares of Biovail Corporation (NYSE: BVF) are really moving this morning, gaining over 5% today. This comes as UBS raised its price target to $34 from $29, and is keeping its Buy rating.
In the research report, UBS says, "CEO Michael Pearson sends memo to Biovail employees In a memo to Biovail employees, the CEO disclosed that the merger team has identified >$300M in cost synergies with >$200M expected in 2011 and the balance in 2012. Further, by the end of 2012 the expected cash tax rate is 15%. Finally, operating targets for each business unit are >20% constant currency growth, >10% organic growth, >35% EBIT margin and an annual cash flow target. All metrics are higher than expected."
Biovail Corporation, a specialty pharmaceutical company, engages in the development and commercialization of pharmaceutical products used in the treatment of specialty central nervous system disorders.
Biovail is gaining $1.36 this morning in early Tuesday trade.
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