UPDATE: Goldman Sachs Initiates Cubist Pharmaceuticals at Buy
Goldman Sachs initiated its coverage on Cubist Pharmaceuticals (NASDAQ: CBST) with a Buy rating and a $54 price target based on the expectation that CSA may be the company's next blockbuster.
Goldman Sachs noted, "We add the shares of CBST to the Americas Conviction List. CBST is a profitable mid-cap biotechnology company with two marketed drugs ($925mn 2012E revenue) and a latestage pipeline (three drugs in Phase 3, Ph3, by YE2012). In our view, the key driver of shares is pipeline drug CXA for hospital-acquired infections, for which we expect positive Ph3 data in 2H13. We project that CXA's expected launch in 2H14 will help drive outer-year growth (we model 2013-2016E EPS CAGR of 20%)."
Cubist Pharmaceuticals closed at $43.49 on Tuesday.
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