UPDATE: Goldman Sachs Downgrades Cubist Pharmaceuticals to Neutral, Reiterates $59 PT Following Removal from Conviction List

In a report published Wednesday, Goldman Sachs analyst Terence Flynn downgraded the rating on

from Buy to Neutral, but reiterated the $59.00 price target on

. In the report, Goldman Sachs noted, “We are downgrading CBST to Neutral from Buy and removing it from the Americas Conviction List as shares are within 4% of our 12-month $59 price target. CBST also announced agreements to acquire TSRX ($623mn adjusted for 1Q13 cash) and OPTR ($458mn adjusted for 2Q13 cash). Our view of key pipeline drug, CXA, is unchanged (Ph3 data 4Q13) and we see this as CBST's next blockbuster. Assuming the proposed acquisitions close, these could transition CBST into an execution story. Since being added to the Buy List and the Conviction List on 8/08/12, CBST is +29% vs. +20% for the S&P 500; over the LTM CBST is +32% vs. the S&P 500 +22%.” Cubist Pharmaceuticals closed on Tuesday at $57.00.