UPDATE: Piper Jaffray Raises PT on Actavis on Pro Forma Estimates
In a report published on Tuesday, Piper Jaffray analyst David Amsellem raised the price target on Actavis (NYSE: ACT) from $128.00 to $160.00, and reiterated an Overweight rating.
In the report, Piper Jaffray noted, "We are reiterating our Overweight rating on Actavis and raising our price target to $160 from $128 as we introduce our pro forma estimates reflecting the impact of the WCRX transaction (more details below). We do not envision any regulatory hurdles that would put the closing in jeopardy. We believe that pro forma diluted cash EPS by 2015 could reach $14.00, and could be meaningfully higher depending on the extent of operational and tax efficiencies (we believe that ACT has set a conservative bar regarding synergies). Though WCRX faces a number of generic threats, we believe that significant P/E compression for ACT is unlikely given the combination of ACT's strong base business, high-value U.S. generic opportunities, active brand pipeline, the ability to de-leverage longer-term, and a tax-efficient platform that enables additional acquisitions down the road."
Actavis closed at $127.15 on Monday.
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