Morgan Stanley Expects Theravance to Continue to Underperform Following 4Q Earnings

In a report published Friday, Morgan Stanley analyst David Friedman reiterated an Underweight rating and $13.00 price target on

. In the report, Morgan Stanley noted, “THRX is still planning for a split by 1Q14. While we await details on the ultimate capital structure and tax rate of the Royalty Co., which is remaining in California, we note that our model currently assumes minimal OpEx and no taxes ever being paid (based on NOL use).” Theravance closed on Thursday at $36.13.