UPDATE: Stifel Downgrades Theravance Following Post-Split Accretion
In a report published Thursday, Stifel analyst Stephen Willey downgraded the rating on Theravance (NASDAQ: THRX) from Buy to Hold, and removed the $47.00 price target.
In the report, Stifel noted, “We are viewing the recent post-split accretion in THRX shares as an opportunity to step to the sidelines. We believe the justification of additional upside from here requires a significant acceleration of Breo sales not supported by current script trends and likely further confounded by the longer-term cannibalization of sales following the introduction of triple-therapy.
"Our reduced peak Breo sales estimate ($2.1B vs. prior $2.7B) remains heavily-dependent on a FY15 U.S. asthma label. Our longer-term enthusiasm for Anoro in COPD remains unchanged ($2.1B peak), but the initial Breo-like launch trajectory further exacerbates the lack of urgency here. Fair value is now estimated at approximately $25/share.”
Theravance closed on Wednesday at $26.40.
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