UPDATE: Deutsche Bank Initiates Coverage on Ligand Pharmaceuticals with Buy Rating, $74 PT on Growing Royalty Play on Biopharma

In a report published Tuesday, Deutsche Bank analyst Gregg Gilbert initiated coverage on

with a Buy rating and $74.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage of Ligand with a Buy rating and $74 target price. We view Ligand as an increasingly attractive cash flow story based on strong revenue growth coupled with significant operating leverage and a low tax rate. The company's diverse revenue base and extensive pipeline of owned and partnered products create a relatively unique investment opportunity within pharma/biotech, in our view. While business development remains a strategic priority, we expect the company to consider other routes of shareholder return as cash continues to accumulate. With ~$190mn of cash on hand post the recent convert offering, we would be disappointed if management did not deploy a significant portion in the next 6-12 months.” Ligand Pharmaceuticals closed on Monday at $52.57.