UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Mylan on Announced Agila Acquisition
In a report published Monday, Bank of America reiterated its Buy rating on Mylan (NASDAQ: MYL), and slightly raised its price target from $33.00 to $34.00.
Bank of America noted, “On 2/27, MYL announced that it is buying Strides' injectables unit, Agila, for $1.6bn in cash. Our initial attempt at adding Agila to our MYL model generally validates MYL's assumption that the deal could be accretive quickly. Our new 2014/15E adj. EPS are $3.52/$3.50 vs. $3.38/$3.33 (or accretion of 4%/5%), and we are tweaking our DCF-based PO up to $34 (from $33). As we stated, we see this transaction as an exciting platform (existing products + pipeline) for MYL to dramatically accelerate its position in the strategically important injectables space, which has seen some FDA-related missteps by competitors (HSP, Ben Venue, TEVA, etc.), especially in the US.”
Mylan closed on Friday at $30.10.
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