UPDATE: Morgan Stanley Increases PT on Actavis Due to Enhanced Visibility and Interest in M&A

According to a report published Monday, Morgan Stanley analyst David Risinger raised the price target on Actavis ACT following the recent Investor's Day. Risinger believed in the 2014 management being able to achieve the higher end of EPS estimates. CEO Paul Bisaro anticipated several generic acquisitions to for brand focus but nothing from Major Pharma. Risinger raised the price target from $182 to $205. In the report, Morgan Stanley explained, "We raised ‘16-‘20E EPS by 5-10%. Mgmt. is investing internally to drive 10% organic EPS growth over the next several years. ACT is the leader in first-to-file U.S generic applications, accounting for 64% of the $5.8B in first-time applications in 2013. Competitors, particularly Teva, were far less active (see slides on p. 4). On the brand side, the planned launch of Delzicol HD in 2015 should blunt the impact of Asacol HD going generic in Nov ‘15/ Jul ‘16 (depends on Zydus' ability to get approval)." On Friday, Actavis closed at $188.98.