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UPDATE: Deutsche Bank Initiates Coverage on Achillion Pharmaceuticals with Buy Rating, $12 PT

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Deutsche Bank Mystified By 18% Jump In Achillion Pharmaceuticals

In a report published Wednesday, Deutsche Bank initiated coverage on Achillion Pharmaceuticals (NASDAQ: ACHN) with a Buy rating and $12.00 price target.

Deutsche Bank noted, “In spite of challenges in HCV, no one is losing interest in the space from speaking to ACHN management. As mentioned in Bloomberg on 8/28/12, many big pharma companies have interest in ACHN. We think acquirers range from current HCV developers to white space players not in HCV. They will want MORE safety in light of recent setbacks & likely lower takeout premiums...Our $12 TP is based on a probability adjusted DCF analysis. We assign 12% discount rate which is a 4.6% premium to our WACC, and terminal growth rate of -100% (no value post patent expiration). Main downside risks include 1) efficacy or safety concerns on NS5A/PI 2) Increased market competition 3) Delays in progress of clinical trial.”

Achillion Pharmaceuticals closed on Tuesday at $8.10.

Latest Ratings for ACHN

DateFirmActionFromTo
Sep 2014UBSMaintainsBuy
Aug 2014Credit SuisseMaintainsNeutral
Aug 2014Deutsche BankUpgradesHoldBuy

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View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Initiation Analyst Ratings

 

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